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Feed-in Tariff Arrangements

In May 2013, the Government released an Issues Paper on the future of feed-in tariff arrangements for discussion and community input.

The Government’s final feed-in tariff policy is detailed in the Final Position Paper available on our publications page. Released alongside the Final Position Paper was an Appendix volume summarising the key issues that were raised in submissions in response to the Issues Paper and the Government's position on these matters.

The Electricity Supply Industry (Feed-in Tariff and Related Matters) Amendment Act 2013 enshrines the Government’s policy and received royal assent on 6 November 2013.

The development of the Government’s feed-in tariff policy was driven, in part, by the expected exit of Aurora Energy from the Tasmanian retail electricity market on 1 January 2014, following divestment of the customer base to new entrant retailers.

However, the arrangements that the Government is putting in place are still necessary and appropriate even where Aurora Energy’s customer base is not divested and Aurora continues to operate in the Tasmanian retail market.

The arrangements will be applied to Aurora as if Aurora was a Regulated Offer Retailer, as described in the Final Position Paper.

The changes to feed-in tariff arrangements affect all those customers who currently export electricity to the grid from solar and other small-scale distributed generation systems of up to 10 kW. The new arrangements also apply to those small customers using less than 150MWh of electricity per year who may be planning to install micro renewable generation systems in the future.

Retail Price Submission

As required by section 40AC of the Electricity Supply Industry Act 1995, in June 2013, the Minister for Finance made a submission to the Tasmanian Economic Regulator relating to proposed maximum prices for standard retail contracts for regulated offer retailers for the period 1 January 2014 – 30 June 2016.

The submission was supported by independent advice and analysis from electricity market experts Ernst & Young and is available on our publications page.

Market and Regulatory Framework Position Paper

A Market and Regulatory Framework Position Paper was released for public comment on 8 March 2013, outlining a number of positions regarding the Government’s proposed market design and regulatory framework.

The Market and Regulatory Framework Position Paper and supporting technical report from Concept Consulting outlined the policy positions relating to the market and regulatory frameworks that will operate from 1 January 2014. The Paper did not detail the structural changes being made to the Government’s portfolio or electricity businesses that also form part of the Government’s reforms.

Following public consultation, the Government also provided a response to submissions received. Both the Position Paper and Response to Consultation are availableon our publications page.

The development of the Government’s policy positions included the consideration of the expected exit of Aurora Energy from the Tasmanian retail electricity market on 1 January 2014, following divestment of the customer base to new entrant retailers. Whilst the sale process has since been closed, many of the positions discussed in the Market and Regulatory Framework Position Paper remain relevant and appropriate and have since been put into action.


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