QUICK FACTS
- Tasmanian currently has the lowest power prices in the nation.
- The special dividend will support 254,000 Tasmanian householders and 35,000 small businesses.
- Dividend to be credited before the end of this financial year.
- Dividend is in addition to existing concessions.
Under our 2030 Strong Plan for Tasmania’s Future, a re-elected majority Liberal Government will:
- Supercharge this year’s Renewable Energy Dividend to deliver a one- off $250 dividend to Tasmanian households on their energy bills, to be credited to Tasmanians this financial year.
- Small business will receive a one-off $300 dividend.
An important part of our 2030 Strong Plan for Tasmania's Future is to continue to deliver immediate cost-of living relief measures.
Deliver a one-off $250 dividend to households and $300 dividend to small businesses
According to the independent Office of the Economic Regulator, Tasmanians currently have the lowest regulated electricity prices in the nation, supported by our concessions and our Renewable Energy Dividend.
The Hydro was built by Tasmanians, for Tasmanians, and our innovative Renewable Energy Dividend allows Tasmanian households and small businesses to share in the Hydro’s profits.
It means when Hydro makes money, Tasmanians save money.
Currently under the Renewable Energy Dividend scheme, every year that Hydro returns dividends in excess of $90 million, Tasmanians will directly share in it. This is an innovative cost of living measure that helps every single Tasmanian household with their energy bills.
Currently, based on Hydro’s dividend of $105 million to be paid this year, $7.5 million of that will be shared with households through the Renewable Energy Dividend.
As a result, every Tasmanian household will this year receive a credit of around $30 on their power bills, above and beyond any concessions they already receive.
Given the current cost of living pressures Tasmanians are facing, primarily as a result of a combination of national and international inflationary pressures and rising interest rates, a majority Liberal Government will make a special dividend payment from the Renewable Energy Dividend.
This year we will supercharge the Renewable Energy Dividend to deliver a one-off $250 special dividend to Tasmanian households on their energy bills, to be credited this financial year. This will include households on embedded networks.
Small businesses will receive a one-off $300 special dividend. This will include small businesses who pay through their landlord.
This dividend will assist every Tasmanian household, around 254,000, that have a domestic electricity connection; as well as around 35,000 small businesses.
How the Renewable Energy Dividend works
Under the Renewable Energy Dividend scheme, every year that Hydro returns dividends in excess of $90 million, Tasmanians directly share in it.
The returns are $90 million that are split 50-50 between returning dividends to Tasmanian households, and supporting the operation of the Government’s essential services.
All Hydro dividends - up to $90 million per year - are returned to the Government, which is then used in the ordinary operations of the government, including on essential services such as health and education.
The Hydro is not a Magic Money Tree
The Labor Party is treating Hydro as a magic money tree, somehow imagining that it can pay for all their reckless and largely uncosted energy prices without costing and accounting for its policies.
Labor has failed their first test of the election campaign, caught out completely fudging their figures with their gimmick announcement on power prices. Labor leader Rebecca White says her policy would cost $50 million.
Basic maths tells you that this is completely wrong.
Cutting $400 off electricity bills for ~250,000 households will cost approximately $100 million. Add a further $44 million for Labor’s price cap, per year. This comes to $144 million in just 12 months.
Net Cost: $66.5 million. ($7.5 million is currently allocated to RED in the RER)