The Premier, of the Australian State of Tasmania, has, announced the State Government will step in to regulate Tasmania’s energy market, and protect consumers. “The Government will immediately seek to regulate the relationship between the Hydro Tasmania (generator) and Aurora Energy (distributor/retailer), to ensure Aurora is able to buy energy at a fair and reasonable price, and operate sustainably” said the state Premier Mr Bartlett. “Put simply, we need to ensure Aurora isn’t required to buy wholesale power at a higher price than it can possibly sell it,” he said. “The Government will reform the system as follows:
• Aurora Energy and Hydro Tasmania will be required to enter an arrangement for Hydro to sell its share of electricity for supply to non-contestable customers at a fair and reasonable price.
• The Economic Regulator will allow Aurora to recover all its costs when selling energy to customers.
“While Tasmanians enjoy some of the lowest electricity prices in Australia, they also deserve certainty – and this Government will take responsibility for delivering it.
“Power prices are destined to rise across Australia. The combined effects of climate change, increasing demand, and rising material and labour costs make that inevitable.
“We need to strike a caring and responsible balance – between giving Tasmanians the lowest power prices possible, and ensuring both Hydro Tasmania and Aurora Energy (both state owned corporations) have a strong and viable long-term future,” Mr Bartlett said.
http://www.premier.tas.gov.au/hot_topics/
regulation_to_protect_tasmanian_energy_customers
Full Ministers Statement to Parliament http://www.premier.tas.
gov.au/__data/assets/pdf_file/0017/123722/Ministerial_Statement_on_Energy_
16_June_2010.pdf
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