Legislative Council, Tuesday 23 September 2025
Ms FORREST question to MINISTER for ENERGY and RENEWABLES, Mr DUIGAN
I know that the flat rate electricity tariff charged on King Island is 32.61 cents per kilowatt hour compared with Tasmanian mainland peak electricity tariff 18.75 cents per kilowatt hour and off-peak electricity tariff being 4.03 cents per kilowatt hour. This flat rate arrangement related to a time when almost all electricity was generated through the use of diesel generators. I acknowledge Hydro Tasmania has a community service obligation, or CSO, which I understand is a guarantee to provide electricity and maintenance to the Bass Strait islands and cost/pricing is not part of that obligation.
My question is, with the increasing use of renewable energy on King Island and reduction in the reliance on diesel generated electricity, will you consider reviewing the power pricing policies for King Island residents to enable them to access time of use tariffs to enable businesses and households on King Island to have access to similar benefits mainland Tasmanians experience and if not, why not?
ANSWER
Mr President, I thank the member for the question. I take a particular interest as a landholder on Flinders Island, which has a similar CSO obligation from Hydro Tasmania as does King Island, and note the great work that Hydro Tasmania does in delivering very stable, reliable; to some extent increasingly renewable power into those remote and difficult locations at a price that most islanders would agree is reasonable, particularly when you would ask them about their solar feeding tariffs which are one to one. If you put a solar panel on your house on King or Flinders Island, you get a one to one feed in tariff and that is very prospective and that’s all about bringing down the amount of diesel we burn on the islands.
I would note the CSO is a responsibility of the Treasurer and that aspect would sit with him to understand about the pricing aspects of how that power is delivered. Hydro is a really valuable member of those communities. Hydro is the generator and the retailer in that area and they do a great job and noting the feed in tariff is extremely good.
Most often when I talk to islanders they say please don’t look too hard at our energy costs.
Supplementary Question
Ms FORREST (Murchison) – A supplementary question, Mr President?
Mr PRESIDENT – I will hear the supplementary question.
Ms FORREST – The statement I made at the beginning was to give context to the question. My question was will you consider revealing the power pricing policies for King Island residents to enable them to access time of use tariffs?
Mr DUIGAN – Mr President, I thank the member for her question. The power prices are a matter for the Treasurer, as I understand it.
Ms Forrest – No, it’s an energy tariff we’re talking about. That’s you.
Mr DUIGAN – Well, again, as I would say, most times I talk to islanders about their power prices they say don’t look too hard. However, if you have somebody who would like to contact my office to start that piece of work, then I would be more than happy to have a look at it.