The Rockliff Liberal Government will deliver millions of dollars in energy bill relief to Tasmanians as the second step in our Tasmania First Energy Guarantee.
“On Friday, I announced that my Government would secure a future for the Marinus Link Project that puts Tasmania first, as part of our Energy Guarantee,” Premier Jeremy Rockliff said.
“Yesterday, I was pleased to announce that we will deliver our first Renewable Energy Dividend to all Tasmanians this financial year, earlier than forecast in my February address.
“Hydro was built by Tasmanians, for Tasmanians, and now Tasmanians will rightly reap the rewards of this Tasmanian success story.
“As I flagged in my State of the State speech, we are introducing a new Renewable Energy Dividend.
” The Renewable Energy Dividend (the RED scheme) means when Hydro makes money, Tasmanians save money.
“Just like shareholders receive a dividend when a business is making a profit, Tasmanians will now directly share in Hydro’s profits, and the benefits will expand as future energy projects come online.
“Under the RED scheme, every year that Hydro returns dividends in excess of $100 million, Tasmanians will directly share in it. This is an innovative cost of living measure that will help every single Tasmanian household with their energy bills.
“The Renewable Energy Dividend will appear as a financial credit on their bill, which means they will pay less, and save more.
“Every dollar counts, and this action as part of our Tasmania First Energy Guarantee is just another way that my Government is delivering on what matters most to all Tasmanians, including cost of living relief.”
Minister for Energy and Renewables Guy Barnett said Hydro had delivered a profit in excess of $100 million five out of the past 10 years.
“Hydro has a strong track record of being a successful business, and our investments in renewable energy will secure this,” Minister Barnett said.
“This is an innovative way that Tasmanians benefit from our renewable energy credentials, and as we bring more renewable energy online, the opportunity for Tasmanians to reap the rewards will go up too.
“This dividend will assist every Tasmanian household, around 254,000, that have a domestic electricity connection.”
This is the second step in delivering on our Tasmania First Energy Guarantee, and the Government looks forward to detailing more ways that we will secure Tasmanian energy for Tasmanians, at Tasmanian prices.
Treasurer Michael Ferguson said Hydro returns its dividends in December of every year, and Tasmanians could receive the discount on the first energy bill at the start of each calendar year.
“Currently, Hydro returns between 70 to 90 per cent of its profits to the State Government, which are then used in the ordinary operations of the government, including on essential services such as health and education.
“So, it’s important to strike a balance between the dividends which are retained by the Government for funding services and repaying debt, and returning some of that money directly to Tasmanian electricity users.
“Under the RED scheme, 50 per cent of any profit over $100 million will go directly to bill relief, while the remainder will go to essential services like health, housing and education.
“For example, Tasmanians could expect a saving of around $100 off their power bill for that year, if Hydro delivered a dividend of around $160 million.”
