The Tasmanian Council of Social Service says a major review of retail electricity prices could affect the wholesale price of energy for Tasmanians.
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The federal government this week announced it would give the consumer watchdog sweeping powers to conduct a major review of pricing in the sector.
TasCOSS chief executive Kym Goodes welcomed the move. “Power bills are one of the biggest payments required of Tasmanians and particularly low income Tasmanians,” she said.
“It is well documented that low income Tasmanians make choices between heating and food during the winter months with many going to bed early or living in only one room to save power costs.”
Tasmanian power prices were around middle of the range nationally,” Ms Goodes said. However, Tasmanians spent a higher percentage of their incomes on energy annually.
“This is because of our generally lower wages, colder weather and poorly constructed housing… Meeting the costs of household energy supply continues to be a major challenge for low and marginal-income households in Tasmania.
“TasCOSS believes that the obligation to support those who otherwise could not afford an adequate household energy supply is as high if not a higher priority than the capacity of the energy market to generate significant profits.”
The government announced the ACCC review on Monday, saying a better electricity deal was “vital to keeping the lights on”.
“Competition in retail electricity markets should mean lower prices for residential and business consumers. However, retail electricity markets don’t appear to be operating as effectively as they could,” Treasurer Scott Morrison said.