TasCOSS has pitched to the government a $138 million household energy efficiency plan that it says will create 4000 jobs.
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In the peak social services body's budget priority statement, it said 85,000 Tasmanian homes would be retrofitted with energy efficiency upgrades if the government adopted the plan.
TasCOSS said the initiative would save households $45 million each year on energy bills, create about 4000 jobs, and put an estimated $475 million into the state's economy.
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"TasCOSS estimates that around 59,000 households in Tasmania are experiencing energy poverty - which is the equivalent to the entire northern region of our state," it said in its budget statement.
The proposal from TasCOSS includes:
- $125 million over four years for a household energy efficiency program;
- $9.6 million over four years to provide free and equitable access to customer energy data through digital apps;
- and $3.5 million in the first year of the budget to extend COVID-19 energy support measures.
TasCOSS said more than 106,000 payment plans were put in place by Aurora Energy in Tasmania in 2018-19.
"This existing issue has been exacerbated by the COVID-19 pandemic as people have had their incomes reduced combined with more time spent in their homes," it said.
"This has resulted in greater numbers of Tasmanians at risk of energy poverty with vulnerable groups such as pensioners, low income households and those with mental and physical illnesses at greater risk."
The $125 million investment in energy efficiency upgrades would be separated by funding for public and social housing, grants for homeowners, and an incentive program targeted at landlords to improve the energy efficiency standard of existing rental properties.
It said the plan built on the state government's $15 million public housing heating and energy efficiency initiative.
The government recently announced residential energy bills would drop by 7.1 per cent from July 1 and by 11 per cent for small businesses.
Energy Minister Guy Barnett said the decision by the Tasmanian Economic Regulator would see about 243,000 households saving between $126 and $145 on their annual power bill.
For small businesses, the saving is estimated to be about $183.
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