Question – Energy Bill Relief Fund

The Hon. Meg Webb MLC asked the following questions to the Hon. Nick Duigan MP, Minister for Energy in the Legislative Council regarding the Energy Bill Relief Fund. 

Text of Questions Asked by Meg:

Question

18 June 2024

[2.55 p.m.]

In relation to the Energy Bill Relief Fund, which was provided through the federal government’s May 2023 budget, for expenditure in this current financial year, 2023-24, are you aware that all other states have fully expended their respective funds allocated this financial year, and that Tasmania is the only state that has not handed on those energy relief funds to the targeted cohort of 140,000 Tasmanians, including concession holders, seniors, carers, and others?

Why has the government not passed on this in full in this financial year from that federal Energy Bill Relief Fund to those targeted Tasmanian households, as all interstate counterparts appear to have done?

Can you confirm the total of the allocated Energy Bill Relief Fund, still to be passed on to Tasmanian households, is $35 million?

Response

18 June 2024

Mr President, I thank the member for the question. I will briefly reflect on the Office of the Tasmanian Regulator, which today set power prices for the next 12 months in Tasmania at a 0.5 per cent increase. It is a relevant point to mention as people are widely interested and
concerned about the cost-of-living impacts via their energy bills.

The member has characterised this as federal relief; however, it is very important to acknowledge the fact that the Energy Bill Relief Fund is a federal-state program, with $45 million from the federal government and $45 million from the Tasmanian government – in addition to our renewable energy dividend, which is a $76 million commitment, coming to every Tasmanian household through the course of next year. It is important to recognise that, for Tasmania, the Energy Bill Relief Fund was an agreed two-year program.

As you point out, there is $250 owing to 140,000 households, which will be paid through the course of this year and next through separate $125 payments. People can look forward to those payments being credited to their energy bills. I do not have the exact date. I believe it is
later this year and early next year – the third quarter this calendar year, and the first quarter in next calendar year. The renewable energy dividend will be credited to their accounts by the end of this financial year and will be in their next billing cycle.

A substantial amount of relief is being provided to Tasmanian energy customers. The government recognises that energy bills are one area, one lever, that we have and we are pulling on it very hard.

To give you some idea, for a concession card holder in Tasmania, residential pensioners as well, $1429 of concessions and support are provided through their energy bills. For residential family tax A and B, carers and seniors card holders, there is $800 of energy support. For other residential customers who I have mentioned who normally do not receive anything, notwithstanding the fact that they are also noticing these cost-of-living pressures, there is $550. For small businesses consuming less than 150 megawatt hours, $625 in relief is coming through the course of next year in state and federal support.

Question – Timing of Payments 

19 June 2024

[2.58 p.m.]

This question follows on from yesterday.

(1) Minister, given Tasmanians are weathering a recent now hard-baked in price increase of 23 per cent, consisting of the 22.5 per cent price
increases of the last two years and the recently announced 0.5 per cent increase, what is the justification for the staggering of the remaining
energy bill relief payments totalling $35 million to 140,000 eligible recipients?

(2) Is there any negotiated or legal impediment to the government revising its initial two-year program to facilitate bringing forward those remaining energy bill relief payments scheduled for September this year and June 2025, which total $250 per recipient?

(3) Minister, can you confirm those relief funds are currently available and will you undertake to investigate revising the original payment schedule to provide that much-needed energy bill relief to eligible recipients within this financial year when they need it most in this season, and,

(4) If not, why not?

Response

19 June 2024

Mr President, I note the question referred to a 23 per cent increase in energy bills over the last three years. I extrapolate that out further and ask the member to look at the last 10 years where there has been a nominal 16 per cent increase in energy bills in Tasmania for regulated tariffs over 10 years, nominally a 16 per cent increase in real terms.

That represents a 14.5 per cent decrease in energy prices here in Tasmania.

You have cherry-picked three years to demonstrate a 23 per cent increase. I will take 10 years and demonstrate a real 14.5 per cent decrease in real-term energy bills here in Tasmania. That is something we should be proud of because it demonstrates as a government
we have done a good job of delivering secure and reliable renewable energy for Tasmanians.

The other thing we have done is provide cost-of-living-relief, which is one lever that state governments have discretion to pull. This government has pulled it very hard. You talk about the energy bill relief program, which is a co-funded and co-designed scheme through the state government and federal government; $45 million each, a $90 million project.

In the case of Tasmania, it was agreed that for residential customers, it would be delivered over two years. As you rightly point out, there is $250 outstanding for residential energy customers. I believe those funds are in the system and they are available. The program was designed to deliver energy bill relief and by stretching it over two years, in the vast majority of cases, it has shielded most consumers from any price rises that they are seeing in their energy bills.

My other point is our renewable energy dividend, a wholly state-funded program, is $250 into the energy account of every Tasmanian household and that will happen come 30 June. It will be attributed to your next energy bill depending on your billing cycle; $300 for small businesses.

I reiterate the point that we are providing relief and that relief is targeted, as it should be. It is doing a good job of shielding most Tasmanian power consumers in challenging circumstances. 

See more of Meg’s Questions to Parliament.