Hydro saved Tasmania from shocking electricity price hikes, says energy regulator
HYDRO saved Tasmania from shocking electricity price hikes in 2012-13, a report by the Australian Energy Regulator says.
The State of the Energy Market report found average Tasmanian electricity bills rose by 3 per cent because of the carbon tax, compared with a 12 per cent hit in the ACT.
AER chairman Andrew Reeves said Tasmania's high concentration of hydro power kept bills down.
"The average carbon pass-through-to-spot electricity prices during 2012-13 was broadly consistent in mainland regions at $17.70 per MWh but significantly lower in Tasmania at $10 per MWh," he said.
The carbon tax of $23 a tonne, introduced in July 2012, helped Hydro Tasmania to an operating profit of $238 million as it received higher prices without having to pay the tax.
In his annual report Tasmanian Auditor-General Mike Blake found the gas-powered Tamar Valley power station cost almost $17 million in carbon tax.
AER's report said the tax added 12 per cent to the average ACT power bill, followed by Queensland (9 per cent), Victoria (8 per cent), NSW (7 per cent) and South Australia (4 per cent).
The Coalition Government has said the repeal of the carbon tax would result in an average fall in bills of 9 per cent. But the AER report suggests the repeal would result in only a 3 per cent fall in Tasmania.
The Office of the Tasmanian Economic Regulator is believed to have decided yesterday on a new price determination from January 1.
Sourced from The Mercury
So all of the price rises over the last year have been to prop up Aurora more then create this so called buffer! As Tasmanian people are paying a carbon tax on hydro generated power but that same power when sold via Bass Link is carbon tax free! So who saved who? 😐
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