The Tasmanian Economic Regulator announced a decrease in Aurora Energy's prices from July 1 but says the annual savings for users will be 'significantly offset' by increases in other costs.
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On Monday the economic regulator approved a 1.38 per cent decrease in Aurora Energy's standing offer prices from July 1, 2020 to June 31, 2021.
The decrease will apply to residential users and small businesses. It will deliver annual bill savings of about $29 for the 'average household' and depending on the size of the small business, up to $125 in annual savings.
However the state's economic regulator said the impact of the reduced energy costs would be significantly offset by increases in metering costs, Renewable Energy Target costs and under recoveries from 2019/20.
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Energy Minister Guy Barnett said he welcomed news of the decrease and the state government was on track to deliver the lowest electricity prices in Australia by 2022.
He claimed the state's energy prices had only increased by about 2.2 per cent since 2014.
"We are amongst the lowest electricity prices in Australia," he said.
"Cost of living is a major issue for all Tasmanians and we are well on track with our Tasmania-First Energy Policy which has a goal to deliver the lowest regulated electricity prices in the nation by 2022.
"To reach our goal we took decisive action with long term benefits by capping regulated electricity prices at no more than CPI for four years starting from 2017-18.
"We plan to de-link from the Victorian wholesale prices by 2022."
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Isobel Cootes
Sports reporter at The Canberra Times. A Novocastrian with a passion for football (or soccer as they call it in the capital) via The Examiner and The Port Lincoln Times.
Sports reporter at The Canberra Times. A Novocastrian with a passion for football (or soccer as they call it in the capital) via The Examiner and The Port Lincoln Times.
