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The Tasmanian Liberal and Labor parties have each unveiled power policies ahead of the state election, revealing electricity bill relief for households and small businesses — but one major point of difference has emerged.
The Labor Party has announced it would withdraw any state funding support for the proposed second undersea energy cable connecting Tasmania to Victoria — known as Marinus Link — at the earliest opportunity, if it wins government.
The contract allows Tasmania to exit the deal and have its share bought out by the Commonwealth, a move Labor said it would make as soon as it's allowed.
"Marinus can still happen — but under Labor, Tasmanians won't be the ones paying for it," Labor's energy spokesman Dean Winter said.
He said there was demand for Tasmanian hydro and wind energy interstate and that the state should not have to fund the project.
"We acknowledge that this is a critical project for the nation, but that is exactly why the Australian government should be the ones to pay for it."
The Liberals' Michael Ferguson said Labor's position on Marinus was "a reckless decision that threatens the future of the Marinus Link and will put a knife through the heart of the Tasmanian economy".
Marinus Link is part of Tasmania's "battery of the nation" strategy and is also listed among the Australian Energy Market Operator's top five priority projects.
Labor says under the Liberals, more than 90 per cent of the benefits of the project go to the mainland while Tasmania is set to foot 17.7 per cent of the bill.
Labor, Liberals propose power bill reductions
No matter which major party wins the state election, Tasmanian voters are set for some electricity bill relief.
Labor has promised a one-off 17 per cent decrease in power prices, resulting in a $400 reduction for the average household.
It has also promised to cap annual power price increases at 2.5 per cent.
The Liberals have promised a one-off payment of $250 for each household, and $300 for small businesses.
Launceston cafe owner Jack Davern said he saw the impact of people struggling with the cost of living, including rising electricity prices, every day.
"Every time interest rates go up you do notice a bit of a downfall. Every time there's a price rise at the supermarket or something like that you notice a bit of a decrease," Mr Davern said.
"Overall in the last 12 months, you definitely find that people will still venture out, but they'll spend less."
Mr Davern said the bill relief payment would make a big difference to small businesses, but also his customers.
"We're a very family-orientated business so we try not to put our prices up, but effectively the only way to plug that hole [rising power costs] is to put our prices up," he said.
The Liberals say their policy would cost $74 million, while Labor says the cost of its one-off reduction would depend on the wholesale market.
"If it's based on last year's prices it will be about $50 million, this year's prices around $100 million, but it's all around what the wholesale price does," Labor energy spokesman Dean Winter said.
Mr Winter estimated the price cap would cost $50 million a year in lost revenue going forward.
The Liberals also unveiled a renewable energy dividend last year, which would bring households some relief when Hydro Tasmania pays a dividend to the government of more than $90 million.
Under the policy, households would share in $7.5 million — receiving $30 each — after Hydro Tasmania paid a $105 million dividend to government, with the remaining $7.5 million to be spent on other funding priorities.
Call for more support for Tasmanians on low incomes
Tasmanian Council of Social Service chief executive Adrienne Picone welcomed the help on offer from both major parties, but said it should be targeted more towards people on low incomes.
"They're doing things like skipping meals, they're missing out on medical appointments just so they can afford the basics like rent and energy, so any relief that's provided to Tasmanians on low incomes will be welcome," Ms Picone said.
"We estimate that around 50,000 Tasmanian households are experiencing energy poverty … we can't live in a situation like that.
"These are the Tasmanians who really need our support now."
Both parties vow to change Hydro direction
Both parties also promised on Sunday to rewrite Hydro Tasmania's rules to focus on putting the needs of Tasmanian consumers first, after reports businesses were struggling to access enough electricity.
Mr Winter said Labor's change to the ministerial charter governing the government business enterprise would make clear that Hydro's primary goal should be "generating enough electricity to supply households, businesses and major industries with power they need now and into the future, at the lowest price in the nation".
"Under the Liberals for 10 years there hasn't been enough electricity, more than 10 businesses have arrived in Tasmania, asked for more than 50 megawatts of power and been told there's none available," he said.
Liberal energy spokesman Nick Duigan said the Liberals would tear up and rewrite the charter.
"Our new charter will return Hydro to its foundational principles of putting Tasmania first, it will again attract business to Tasmania, creating jobs and all the economic benefits that come with that," Mr Duigan said.
Tasmanian Small Business Council chief executive Robert Mallett welcomed both parties getting on board the change.
"Tasmania is increasingly becoming a come-to place for climate refugees and new business alike, and we need to have a unique selling point to get them to stay and develop 21st-century enterprises," Mr Mallett said.
"Sustainable, green and affordable energy generated and sold by a Tasmanian business may just be the hook that lands our future fish."