Release Date: 12/06/2013
TASMANIA’S peak business body has welcomed the State Government’s move to have the Economic Regulator cut electricity prices and restrain future increases.
The Tasmanian Chamber of Commerce and Industry (TCCI) has also commended Aurora Energy and Transend Networks for the stronger focus on customers and lower prices.
TCCI Chief Executive Michael Bailey said establishing the regulated price as a prelude to full retail competition was an important part of the energy reform process, which the TCCI supported.
“The Tasmanian Government needs to pull every lever it can to reduce power prices, while ensuring that the retail market is dynamic and competitive for all customers, especially small business.
“Rapidly rising electricity prices over recent years have impacted harshly on the Tasmanian community and energy costs are consistently listed in our Survey of Business Expectations as one of the major factors preventing business and employment growth,” Mr Bailey said.
“Our ‘big four issues you can’t ignore’ campaign launched today focuses on the difficulties faced by small business in employing people and lower energy costs will make it easier to create jobs.”
Mr Bailey said the Government’s submission to the Economic Regulator was an important step in the reform process.
“As well, we commend Aurora and Transend, for their much stronger focus on customers and restraining upward pressure on prices.
“Together the businesses and the Government need to push hard to ensure that the benefits of merging the network businesses are delivered to both the State, through its shareholder returns, and customers, through lower network prices.
“An important role for the Government is to set a firm strategy through the governance framework, and TCCI has recommended that this be a transparent process or at least, subject to consultations with key stakeholders.
“The solar feed-in tariff is another area where the State has an important role to ensure that price increase pressures are minimised.
“Excessive feed-in tariffs are inequitable and a growing cost to consumers that do not have solar units installed on their premises, so the TCCI has supported the proposals in the recent issues paper.
“Other consumers should not have to provide ongoing subsidies to those with solar units in place, with most already having received extensive support through the Federal renewable energy scheme for their installation.
“Like all Tasmanian electricity consumers, the business community is sick of constantly rising prices and supports the State Government’s efforts to end this cycle,” Mr Bailey said.