Hydro Tasmania is taking action to limit short-term power price increases for many Tasmanian businesses.

Tasmanian wholesale power prices are generally based on the Victorian market. Hydro Tasmania believes Victoria’s wholesale prices for the 2017/18 financial year are unsustainably high for Tasmanians.

Hydro Tasmania will therefore be pricing wholesale contracts for 2017/18 in line with Victorian prices projected for the following financial year (2018/19).

At current market values, this change will make wholesale energy for many Tasmania businesses in 2017/18 more than $20 per megawatt hour cheaper.

The move is forecast to reduce Hydro Tasmania’s 2017/18 revenue by between $10 million and $15 million.

The Chief Executive Officer of Hydro Tasmania, Steve Davy, said the business is determined to work with the Tasmanian Government to help ease pressure on Tasmanian customers.

“We’re lowering these prices to help support Tasmanian businesses and the Tasmanian economy,” Mr Davy said.

Today’s announcement is expected to benefit Tasmanian business customers who have not yet entered a contract with a retailer for 2017/18.

Hydro Tasmania has rebuilt storages after the 2015/16 energy supply challenge. On Monday 1 May, storages were at 36.2 per cent.

Ends.

Released for Hydro Tasmania by Rowan Dix, (03) 62305330 / 0409 722359 / media@hydro.com.au.