KING Island businesses and families are bracing for the ongoing cost-of-living squeeze as the price of power increases.
Electricity retailer Momentum’s annual price review for the Bass Strait Islands will see prices on King Island increase 9.51 per cent from September 1.
Households already struggling under cost of living pressures including rising interest rates, record rent increases, and higher than CPI food and fuel price increases, are expecting an increase of $210 on an average annual bill.
TasCOSS CEO Adrienne Picone, said with one-in-four households already unable to afford the cost of living, this increase in electricity prices will lead to further energy debt, greater financial pressure and increased hardship.
King Island Mayor Marcus Blackie said like most King Islanders he was disappointed by this hefty retail power price increase.
“As a council we managed to keep our fees and charges increase to a very reasonable five per cent this financial year and met the ratepayers halfway,” he said.
“However, to draw out some positives for King Island we do have a diverse energy supply with diesel, wind and solar.”
The island is powered by renewable energy supported by diesel and HydroTas previously said the $4.5m solar farm project, announced late last year for the Huxley Hill Wind Farm site, is intended to increase the amount of renewable energy produced on King Island and replace 300,000 litres of diesel on the island every year.
“I acknowledge the work and dedication of our local Hydro Tas team here on King Island,” Mr Blackie said.
“They do a great job looking after us and in recent years power outages have become very rare, despite the huge storms we have. So, we’ll focus our gripes at the corporate and government policy levels and still fully support our local utility team.
“In my opinion, the prevailing narrative we are given in Australia on energy supply and retail power pricing is becoming increasingly at odds with reality.”
Operators of the King Island Hotel said the increase was “astronomical”.
“It will hurt King Island traders. You can only ask so much and this will force some businesses to get out,” John Smith said.
“The hospitality sector is feeling it, people haven’t much disposable income.
“People do not have spendable money once they have paid their day-to-day costs.
“For our businesses, a close to 10 per cent increase is a hefty sum and we, like all businesses, will need to pass that on to customers,” he said.
Both the Federal and State Governments are offering $250 rebates for eligible households to help offset the increase and a separate rebate of $650 is available for eligible small businesses.
King Island has one all-energy Tariff 51 which will increase to 31.7933 c per kWh for 2023 – 24. The island does not have other tariffs for example off-peak or general business rates.
HydroTas said their Customer Service Obligation was to guarantee electricity supply on the island and in a recent statement said: “Our Community Service Obligation helps shield the island from the full cost of electricity generation.”
Photo by Daniel Barnes on Unsplash