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Reshaping Tasmania's electricity sector

Tue 4 December 2012

Bryan Green

Deputy Premier

The Deputy Premier Bryan Green said today energy market reforms proposed by the Prime Minister would build on the work already underway to reshape Tasmania's electricity sector.

Mr Green said Tasmania was ahead of the game nationally as governments around Australia come to terms with the growing demands on their energy infrastructure.

"Tasmania has an electricity supply system the envy of Australia if not the world because we have done the hard yards to ensure we have a secure and reliable energy supply," Mr Green said.

"The investment we have made in our electricity network is underpinning economic certainty and confidence for businesses.

"I expect electricity price rises to flatten out in coming years because less expenditure is needed on Tasmania's infrastructure which will see a decrease in network charges.

"This sets us apart from other States which still need to invest significantly in the upgrade and expansion of their electricity networks.

Mr Green said Transend's capital expenditure was forecast to drop by about $50 million a year off a base of around $120 million year.

Mr Green said the merging of Aurora's distribution business and Transend's networks as part of the Government's major energy reforms would also see a more efficient and simpler system.

"We support the national energy market reforms announced by Julia Gillard this week because they will also help keep downward pressure on power price rises.

"Initiatives such as the changes to regulations for transmission and distribution businesses, establishment of a Consumer Challenge Panel and more resourcing for the Australian Energy Regulator will give customers a greater voice in the process and ensure outcomes are in the best interests of customers.

"The Government is committed to easing the pressure of electricity prices on Tasmanian households and that's what our energy reforms are delivering.

Mr Green said the introduction of competition and choice for Tasmanian consumers was also critical to keeping downward pressure on power price increases.