WA Greens energy spokesperson, the Hon. Tim Clifford MLC urges the Labor government to act immediately and scrap the Tariff Equalisation Contribution. WA Greens have discovered that this would save power users on the South West Interconnected System around $70 a year if this hidden subsidy was removed from user’s bills.
Last week the WA Greens highlighted the issue when the Labor government increased power costs by 10% to cover cost reflectivity. Electricity costs could be reduced by 4.4 per cent if the government scrapped the TEC and make it a community service obligations in the Budget.
The cost to equalise electricity costs between city and country users is paid as a hidden levy by Synergy customers. Greens energy spokesperson Tim Clifford said it was fair that rural and regional people paid an equal amount for electricity as city people, despite the cost to deliver that electricity to country users was more expensive.
““There is no reason that city based low income earners should be subjected to bill shock, its time the government provided transparency in its bills. We have discovered that by scrapping the TEC, power prices could decrease by $70 per year for an average householder,” he said.
“Once the tariff is highlighted as a new line item it could drive investment into cheaper renewable battery storage solutions to reduce the cost of producing electricity in regional and rural areas.
“This would be a much easier option for low income earners and concession holders, who would struggle to pay their power bills because the Government increased power prices this budget without removing the TEC.
“The Greens call on Labor to support this measure immediately, what is the Government waiting for?”