Canberra looks set to buck the national trend of soaring power bills with most households to see a modest lift and some receiving a cut of up to $900.
The ACT budget to be released on Tuesday will outline how the territory’s 100 per cent renewable energy contracts are driving down power prices, alongside cash relief for struggling families.
Renewables-reliant Tasmania is forecasting an average $200 lift in power bills over the year, with cash rebates in co-operation with the federal government to ease some of the pressure.
But the ACT budget papers will show a $75 a year rise for two-thirds of households – which would have been $225 without the territory’s large-scale renewable energy contracts.
The territory government will also announce an extension of the utilities concession to Commonwealth Health Care Card holders, benefiting 12,000 extra low-income and low-wealth households.
It will extend the one-off increase to the utilities concession for a further year, meaning the total rebate in 2023/24 is $800.
This will mean a drop of $100 in bills for 14,000 households, a $100 cut and $800 concession for 31,000 households and a $900 easing for 12,000 households.
“The ACT government’s transition to 100 per cent renewable electricity continues to shield Canberra households from the electricity price volatility experienced in other jurisdictions, leading to cheaper energy bills,” chief minister Andrew Barr said.
The Australian Energy Regulator last month said it would allow the default market offer for household power bills to rise by up to 25 per cent from July 1.
In broader terms, the national capital’s economy is expected to slow as household spending decreases in response to inflation and higher interest rates.
The ACT’s inflation rate of 6.2 per cent over the year to March is significantly higher than the five-year average annual increase of 3.4 per cent.
Housing will also be in focus, with $345 million in initiatives to improve choice, access and affordability, including build-to-rent projects.
The government will also lift the price cap for the owner-occupier duty concession for stamp duty on off-the-plan purchases by $100,000 to $700,000 in 2023/24.
It will further reduce stamp duty for all owner-occupier purchases under $1,455,000.
By Paul Osborne in Canberra
