The Tasmanian Greens have accused the State Government of betraying electricity users over a deal to source power from a Queensland provider rather than Aurora Energy.
Since the start of the year, several departments including the Department of Premier and Cabinet, Primary Industries and Economic Development have used power from Queensland based firm, ERM.
The Greens’ energy spokesman, Kim Booth, believes the deal will force up Aurora Energy’s costs and therefore prices.
Mr Booth says it is scandalous that the Government can bypass its own business to seek out cheaper electricity prices but average users can not.
“I’m absolutely stunned and horrified that the Government would engage in a secret deal to effectively betray the ‘mum and dad’ electricity consumers in Tasmania who are the ones who will pay the cost for this grubby deal,” he said.
The State Opposition has also slammed the move.
Opposition Energy Spokesman, Matthew Groom, agrees it is wrong that the Government can choose but the average user and small business have no choice.
“Frankly, the Government just doesn’t get it they don’t get it,” he said.
…
The Premier, Lara Giddings, says while medium to large business and Government can buy power elsewhere, she is not convinced it would be beneficial to open up the residential and small business market to competition.
Mercury broke the story: HERE: $16.4m snub for Aurora
WARNINGS ABOUT BASSLINK IMPACTS ON POWER SUPPLY EVENTUATE
Kim Booth MP
Greens Energy spokesperson
The Tasmanian Greens today accused Labor of condemning Tasmanian mum and dad electricity users to spiralling prices due to forcing Aurora Energy to purchase of the over-priced and unsuitable Tamar Valley power station (AETV), as well as signing up to the huge rental price for the Basslink cable.
Greens Energy spokesperson Kim Booth MP said the Greens warned repeatedly about the economic price that would inevitably have to be paid by Tasmanians due to the AETV deal and the rental of the Basslink cable, and it now beggars belief that Labor has negotiated a special deal for department electricity users after causing and then trying to turn its back on the price rises facing the Tasmanian community.
Mr Booth also said that it is disingenuous of the Liberals to now protest about electricity prices when they themselves had been pathological supporters of the Basslink gamble and the AETV purchase in the first place, despite Greens’ warnings at the time about potential impacts.
“Labor and the Liberals both ignored warning after warning from the Tasmanian Greens about the price-rise ramifications of forcing Aurora to purchase the AETV, as well as committing all Tasmanians to decades of rental on the Basslink cable,” said Mr Booth.
“Ironically the Liberals advocated Basslink on the grounds of increased competition, and now they have the gall to be shocked about the impacts that has on Tasmanian energy suppliers. They should have the gumption to admit they got it as wrong as Labor over Basslink.”
“This situation is exactly why the Greens have repeatedly called for the development of a statewide energy strategy, and why we achieved an independent energy review to inform the development of that strategy.”
“For Labor to now arrange a cut-price supply while the community cannot access the same cheaper arrangements, and for the Liberals to attempt to blame the Greens who were the only Party to oppose the decisions behind our spiralling energy prices, reveals the breath-taking arrogance and incompetence of these political dinosaurs.”
“Labor’s special electricity deal excludes the community that is being forced to underwrite their appalling decisions to purchase the over-priced and unsuitable AETV and to pay $93 million dollars per year to rent the Basslink cable, decisions which the Liberals supported so they must now also accept some responsibility.”
“This is another grubby Minister Bryan Green deal, which could result in the cheap power for government being paid for at the meter by the Mum and Dad electricity users who cannot access similar arrangements themselves.”
“It is breathtakingly devious for Labor, who forced Aurora to buy the AETV in the first place, to now turn around and backdoor them because the cost of generation is too high, and for the Liberals to complain about Labor doing so given their blind support for the AETV purchase,” said Mr Booth.
Mercury, Friday:
Storm over interstate power deal
DAMIEN BROWN
MOST cut-price power bought by the State Government from a Queensland electricity retailer will come from Tasmanian dams and then be sold back at a discount rate.
It has raised questions about why power from Tasmanian taxpayer-owned electricity companies, Hydro and Aurora Energy cannot be sold at the same price, given residents and small businesses do not have the option to shop around for electricity.
The Greens yesterday accused Labor of betraying electricity users by signing the “grubby” deal to buy the cheap power from Queensland retailer ERM Power instead of struggling Aurora.
The Mercury yesterday revealed that the State Government will buy
$16.4 million of electricity from Queensland company ERM at half the price it would pay Aurora Energy.
The tender, awarded in January, gives ERM supply rights to some of the state’s biggest departments, including Primary Industries, Parks, Water and Environment, Police and Emergency Management, Economic Development, Tourism and the Arts, Premier and Cabinet, Education and Justice.
The 160 gigawatt hours of energy will mostly be generated here but extra can be imported via the Bass Strait power cable Basslink, which costs Hydro Tasmania about $92 million a year.
Based on the average price of 23.6c/kilowatt hour charged by Aurora for business customers, the new government contract is less than half price at an average rate of 10c/kWh and will provide the equivalent of the power used by 16,000 homes a year.
Cabinet minister Nick McKim has been outspoken against Bass-link and use of non-renewable power but now, under the new deal, all of Mr McKim’s departments are powered by ERM.
Opposition energy spokesman Matt Groom asked why power at Hydro and Aurora cannot be sold at the same price.
“How is it that ERM can buy power from the State Government’s own taxpayer-funded generators and sell it back to the very same people at a bargain basement price?” Mr Groom said.
Energy Minister Bryan Green attacked the Liberals for opposing the deal, given that they supported the state entering the competitive energy market.
“ERM’s power-price contracts with Tasmanian customers will not affect the source of power supply, rather power will continue to be largely generated by renewable sources from within Tasmania,” Mr Green said.
He said a review into the state’s energy sector was under way and would report by August.
Greens MP Kim Booth was infuriated: “I’m absolutely stunned and horrified that the Government would engage in a secret deal to effectively betray the mum and dad electricity consumers in Tasmania, who are the ones who will pay the cost for this grubby deal.”
