Today the TSBC has launched a twelve month investigation into Tasmania’s Wholesale Electricity Market structure and have found it to have the capacity to be problematic in the coming years.
TSBC Executive Office Robert Mallett said that ’the situation has come about as a result of our island geography, a successful dominant and environmentally sustainable generator and successive governments which could control the market’.
‘With industry even more global than envisioned in the halcyon Hydro era, future governments need to plan on a long term strategy to make business in Tasmania more confident of a major input cost to their business.’
Following are some points made in the report.
- The wholesale electricity market is important to Tasmanian small businesses
- Wholesale costs make up around 37% of small business electricity bills, making them the second biggest component after network charges (43%).
- Wholesale prices increased significantly in 2015 (due to the low hydro dam levels and the prolonged outage of Basslink), fell after the crisis and they more than doubled from $60/MWh to $125/MWh in the year from May 2016 to May 2017