State government help for rising Tasmanian power prices outlined

But another kick is looming - the Tasmanian Economic Regulator (TER) will, in the coming weeks, announce power price hikes that will take effect in the coming financial year.

After a 12 per cent increase last year, Tasmanians should expect to be paying between 5 per cent and 15 per cent more this coming year, according to energy analyst Marc White.

Assuming a 10 per cent increase, that's an average of about $120 per year in extra costs to Tasmanian households.

TER decides independently how much we are all charged for regulated commodities, like power and water prices, and it sets the price of regulated electricity every June, with new prices taking effect from July 1.

So what is the government doing about this?

Energy Minister Guy Barnett spent Monday morning promoting the benefits of the government's Energy Saver Loan Scheme. This initiative lets households and small businesses take out interest-free loans of up to $10,000 to purchase energy-efficient equipment like solar panels.

It's one of the key initiatives the government has said will help people deal with rising electricity costs.

Solar can significantly cut down on power bills, with some experts saying that solar projects can pay for themselves in as little as six or seven years, while some manufacturers give 25-year warranties on the panels.

Mr Barnett on Monday said there had been 1352 loans totalling $11.3 million approved since the scheme started in October last year.

A total of 880 installations have been completed, and over 80 vendors have been approved to supply the products and perform the installations - with most of the work formed under the scheme by Tasmanian businesses, Mr Barnett said.

"These energy-saving applications represent more than 1000 solar systems, 200 electric heating and cooling systems, 80 double glazing installations, 60 hot water systems and more than 60 battery storage solutions," he said.

The government's other primary efforts to help Tasmanians deal with rising power prices include the winter bill buster payment, which cuts $180 off the power bills of concession car holders during winter.

More recently, the government has unveiled $250 support payments to other low-income Tasmanians for their power bills in a joint state-federal initiative.

But there's been plenty of criticism of these initiatives.

According to the Tasmanian Council of Social Services, the $250 federal-state power subsidy will "quickly be eaten up by the anticipated electricity price increase".

In its budget submission, the organisation called for the government to cap future power price increases at the rate of inflation - which is similar to Labor's policy.

The government has criticised the power price cap proposal. Treasurer Michael Ferguson in April said Labor's power price cap was "a con job that is unaffordable and undeliverable".

The government says it's a difficult policy to cost, and it would also diminish incentives to invest in generating capacity in the state.

The Energy Saver Loan Scheme has also attracted criticism.

The scheme does little to help low-income Tasmanians that rent- there is little incentive for renters to pay thousands of dollars for solar on a roof that they may or may not be sleeping under in a few years.

Some renters may also not be able to get permission from property owners.

For Tasmanian businesses, some of which use too much power to qualify for regulated prices, the past year has seen significant contract price increases on electricity.

But these increases have started to ease, as wholesale power prices edged back after hitting a high late last year.

Some reported having to sign up for increases of over 100 per cent on their new power contracts.

The government has attempted to help these out - large businesses that signed new higher contracts became eligible for up to $20,000 in assistance via a new program.

We will soon see whether these schemes are enough to help Tassie households and businesses weather the storm.

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