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ARTICLE · 10 DECEMBER 2012

Hydro Tasmania: The Benevolent Monopolist?

Corrs Chambers Westgarth
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Tasmania has opened up its electricity market to new retailers, but Hydro Tasmania remains the only player to date.

AustraliaEnergy and Natural Resources
Clare Corke
Clare Corke
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Tasmania has opened up its electricity market to new retailers, but with Hydro Tasmania remaining such a powerful player, will any retailers come to the party? For now, the 'big three' are steering clear.

The Tasmanian Government has taken the first step in implementing its Electricity Reform Project, by introducing the Electricity Reform Bill. The Bill will enable the sale of Aurora Energy's customer base, as well as other reforms to the State's electricity industry.

This follows an 18 month review by the Parliament's Expert Panel, which found that even if Aurora's dominance over the retail market is removed, electricity retailers may still lack the confidence to enter Tasmania, due to Hydro Tasmania's effective monopoly of the wholesale market and ability to set spot prices.

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