Summaries - Australian Financial Review
Thursday 17/6/2010 Page: 10
After admitting that joining the national electricity market has failed to produce competitive benefits, the Tasmanian government will take control of the state's wholesale electricity prices. Premier David Bartlett said yesterday that with only two major companies in Hydro Tasmania and Aurora Energy, the local market was not working effectively so that the government needs to intervene to fine-tune the system. Electricity prices in Tasmania are growing and rises are set to go over a 5% cap, which was a key Labor promise in this year's election.
The Premier indicated that Hydro has to sell power to Aurora Energy for noncontestable customers at a fair and reasonable price to be determined by the Treasurer. Mr Bartlett was speaking before today's budget, the first since Labor formed a coalition with the Greens earlier in 2010. Treasurer Michael Aird will not reveal if his fourth budget will be in line with his 2009 forecast to take Tasmania into a surplus by 2012. Opposition Leader Will Hodgman said the proposal to take responsibilities for setting energy prices away from the economic regulator must be examined.
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