Hobart Mercury
10 February 2011, Page: 2
TASMANIAN households would be paying $35 extra on their annual power bills if contestability was introduced tomorrow Premier Lara Giddings said yesterday. The call comes as the State Government came under increased pressure form the Opposition after it was revealed yesterday energy companies Origin Energy and TRUEnergy would be interested in entering the Tasmanian retail market if it was opened for competition.
Opposition energy spokesman Matthew Groom said the comments from the energy companies were in direct opposition to previous comments made by Energy Minister Bryan Green. On Sunday, Mr Green said there were five energy retailers in the Tasmanian market offering power to commercial clients and only Aurora Energy supplying household customers. He said: "The other four have flatly ruled out selling power to households if full contestability was introduced tomorrow".
However, Origin Energy told The Mercury yesterday it agreed in principle to a contestable market and would be interested if the market opened up, allowing it to sell to Tasmanian householders. Ms Giddings said the State Government would introduce greater competition into the retail energy market tomorrow if they thought it would succeed.
"We want to see cheaper electricity in this state and if that was [clearly achieved] through introducing retail contestability, we would do it today", Ms Giddings said. She said figures from the Economic Regulator's final report into contestability showed Tasmanian's power bills could climb by $35 a year if retail contestability was introduced. Mr Groom said the Liberal Party would push for legislation to ensure Tasmanian families and small businesses had a choice.
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