The Northern Territory Government’s restructuring of the Power and Water Corporation has resulted in reduced electricity tariffs and significant savings for families.
Northern Territory Chief Minister, Adam Giles, said electricity tariffs would be reduced by five per cent from 1 January 2016. A CPI increase of up to 2.5 per cent had also been ruled out.
“This means a saving of about $155 for the average Territory family in 2016 as a result of structural and regulatory reforms undertaken by the Country Liberals Government,” Mr Giles said.
“Since coming to Government, the Country Liberals have worked hard to lower the cost of living for Territorians. We are now in a position to reduce the cost of electricity for Territorians, as the benefits of our electricity sector reforms begin to deliver good outcomes in terms of improved efficiency.”
For an average Northern Territory family consuming 12,000KWh per year, the reduction in electricity prices equates to an estimated annual price reduction of about $155 and for an average small business consuming 34,000 KWh per year the reduction would be approximately $200.
Minister for Essential Services, Willem Westra van Holthe, said on a quarterly bill of about $1000, it would mean a saving of about $200 a year.
“Retail competition for residential customers will also be introduced to give households greater choice of their electricity supplier and greater ability to access new and innovative products, like smart meters,” Mr Westra van Holthe said.
The construction of the North East Gas Interconnector (NEGI) Pipeline together with new competitors in the electricity generation sector also signals further price reductions in the future.
Mr Giles said the lower electricity prices would not be possible without the new industry structure and ongoing regulatory reforms.
“We are delivering, and will continue to deliver improved management of costs in all parts of the Territory electricity supply chain,” Mr Giles said.