Labor has described government financial assistance to cushion the blow of steep impending power price increases from next month as a cruel hoax.
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The Tasmanian Economic Regulator on Friday announced from July 1, power prices would increase by 11.8 per cent in Tasmania for residential and business customers.
This will mean the annual bill for a residential customer will go up by between $200 and $227 and the average bill for a small business will go up by $176.
Regulator Joe Dimasi said wholesale electricity costs had increased by 37 per cent over the year and this accounted for 10.4 per cent of the incoming price increase.
In reaction to the price increase, the Tasmanian government announced concession cardholders would receive a $180 discount on their power bills next financial year.
The discount is to include the $61 concession increase that was already budgeted for concession cardholders this year and a bill credit of $119 from an eligible customer's next bill from August 1.
Energy Minister Guy Barnett said the government would scrap the aurora+ charge and boost its energy efficiency loan scheme to allow more people to access $10,000 loans for energy efficient products.
Earlier this week, Labor sought to push through a 2.5 per cent power price cap in Parliament to avoid the massive anticipated rise.
Labor's energy spokesman Dean Winter on Friday said the assistance package was a cruel hoax and would do little to ease cost of living pressures for Tasmanians in general.
"The government said it was going to disconnect from the National Electricity Market to avoid exactly this circumstance," he said.
"It said the volatility in the market could cause prices to go up so it would delink.
"There is volatility in the market, prices have gone up and because this government didn't do its job, we are now experiencing massive bills shock."
TasCOSS chief executive Adrienne Picone said the surge in household electricity costs would compound the pressure felt by rises in the cost of food, housing and transport over the past year.
"I can't emphasise enough how incredibly tough life is for Tasmanians living on a low income right now," she said. "It's scrounging, it's scrimping, it's having to make insidious decisions between putting a meal on the table or paying a bill.
"The significant increase to electricity prices is only going to make an already bad situation worse."
Ms Picone said she was pleased the government had recognised the significant impost on incoming power prices on low-income Tasmanians through its winter relief program.
Unions Tasmania secretary Jessica Munday said it was disappointing only concession cardholders would get assistance with their power bills this winter.
"Financial help for concession cardholders is essential, but this increase is going to hit all Tasmanians, including workers and their families, really hard," she said.
"More and more workers are struggling to make ends week despite having employment because of a combination of insecure work, low wages, and rising living costs.
"Power price increases like this show why wage rises akin to those delivered by the Fair Work Commission for minimum wage workers Wednesday - and higher - will be necessary so people can keep their head above water."
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