Tasmania's industrial shutdowns may lift residential electricity costs
The closure of major Tasmanian factories could shift millions of dollars in network fees onto households and small businesses, raising average power bills.
The termination of operations at Liberty Bell Bay and the uncertain future of Bell Bay Aluminium are set to transfer the cost of their network usage to other Tasmanian electricity users, according to analyst Marc White. He calculates that spreading Liberty Bell Bay's roughly $8 million annual network fee would lift the average household bill by about 0.6%, while Bell Aluminium's $25 million could add another 2% if it ceases.
TasNetworks interim chief Renee Anderson notes the company absorbed Liberty Bell Bay's loss for the current financial year but has not decided on future treatment. The loss of industrial demand may also require a $120 million investment in the George Town substation to maintain system balance. Hydro Tasmania could profit by selling the freed capacity at two to three times current industrial rates, especially once the $5 billion Marinus Link to Victoria is operational. Industry Minister Felix Ellis highlighted the disparity between industrial and residential tariffs, and economist Saul Eslake called for greater transparency on the subsidies.
Why it matters
Higher power bills could affect Tasmanian households and small firms as major factories shut down.
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