Ms FORREST question to LEADER of the GOVERNMENT in the LEGISLATIVE COUNCIL, Mrs HISCUTT
With regard to the way retail pricing is set by the Office of the Tasmanian Economic Regulator (OTTER), and noting:
• the current energy mix in Tasmania;
• the model uses Victorian forward pricing as the reference and variable inputs from Hydro Tasmania to then set the wholesale contract price that can be charged;
• that this mechanism has been in place since January 2014; and
• the Tasmanian energy mix has additional wind farms that are not part of the formula used by OTTER although onerous contracts have been entered into for this generation to be provided to Government owned businesses, Hydro Tasmania and Aurora Energy;
Can the Government advise:—
(1) Is this methodology now considered outdated; and
(2) (a) Will this methodology be reviewed to ensure the power price setting formula remains relevant; and
(b) if so, when?
(1) No. Tasmanian wind farm data are already included in the calculation of prices for Tasmanian regulated wholesale contracts that are used as inputs to calculate the Wholesale Energy Price when determining standing offer prices.
(2) (a) Given the current approvals in the Instrument expire on 30 June 2024, the Regulator is currently conducting a Wholesale Contract Regulatory Instrument pricing investigation.
(b) An investigation draft report and the draft approvals are scheduled to be published by 3 April 2024 with the investigation to be completed in June 2024. A new Instrument containing the new approvals will then be published by 30 June 2024.
The Regulator will invite submissions from interested parties in response to the draft report once published. Submissions must be in writing and must be made within four weeks of the publication of the draft report.