The issues discussed in this Tasmanian Electricity Supply Industry (TESI) Report are important to the property industry and to Property Council members in general.
Therefore the Property Council's submission aims to draw the Panel's attention to other opportunities available to deliver true reform to the industry and cost savings to customers.
ln addition to providing a critical analysis of the Panel's draft Report, this submission raises important questions that must be considered before any sweeping reforms are approved.
It is our members' opinion that to truly introduce a competitive retail market, the industry must 'get back to basics' and assess whether the motivators of the original reform remain relevant in the current market.
There are other opportunities available to facilitate a truly low cost and efficient electricity market for Tasmanian customers.
With consideration of the Panel's findings, the Property Council recommends the following actions:
The TER is held to account with regard to the long range marginal cost model used in the tariff price determinations. Their model must more closely reflect the Tasmanian market conditions and provide a fairer price to customers.
The two- part pricing model be restructured to ensure the cost to any given customer is reflective of the actual cost of generation, transmission and use. This is critical to ensure customers have the sufficient ability to control their cost
A feasibility study be conducted into the merit of maintaining a permanent connection with Basslink, taking into account its impact on pricing, generation influence, the impact of future carbon tax legislation and Tasmania's future demand requirements.
The Panel's scope be expanded to consider the merits of amalgamating Hydro, Transend and Aurora as opposed to the introduction of further market participants.
lf the Panel deems that the introduction of new wholesale competition is appropriate, the Property Council expects evidence be provided which identifies the true cost savings to customers. These findings must be made public and available for comment and scrutiny.