How Are Electricity Prices Set in Tasmania?
Types of Electricity Contracts
Tasmanian customers can choose between:
- Standard retail contracts (regulated prices, offered only by Aurora Energy)
- Market retail contracts (offered by other authorised retailers)
The Electricity Supply Industry Act 1995 requires the Regulator to determine the maximum prices that Aurora Energy can charge small customers who pay regulated prices for electricity. These regulated prices provide a safety net for small customers.
How Prices Are Determined
The Regulator conducts a price investigation approximately every three years. This investigation looks at what Aurora Energy's efficient costs should be, rather than what its actual costs are.
Following the price investigation, the Regulator makes a Price Determination, which is a document that sets out how prices will be calculated for the next three years.
Aurora Energy then submits a pricing proposal each year showing how it will charge customers (fixed vs usage charges). The Regulator checks that the proposal aligns with the Determination before approving prices.
Who Are Small Customers?
- All residential customers
- Small businesses using less than 150 MWh per year
What Costs Make Up Your Bill?
- Generation costs (about 35 per cent)
- Network costs (about 38 per cent)—set by the national Australian Energy Regulator
- Retailing costs (billing, customer service, etc.)
- Metering, market participation, and renewable energy costs (about 14%)
The Regulator has control over about 12 per cent of total costs.
Your Options as a Small Customer
You can:
- Stay on a standard contract with Aurora Energy
- Choose a market contract with Aurora or another retailer
- Switch back to a standard contract if needed (fees may apply)
Concessions for Eligible Customers
If you hold a concession card, you may qualify for discounts like:
- Annual Electricity Concession
- Life Support Discount
- Medical Cooling Rebate
- Heating Allowance
More info is available at www.concessions.tas.gov.au.