Aurora – Gas

Home » Parliament » Estimates » Aurora – Gas
Dr Rosalie Woodruff MP
November 22, 2023

Dr WOODRUFF - Thank you. Question for the Chair. I may not have this correct, but please correct me. I understand that the Australian electricity regulator has approved Tas Gas to move into the retail market for electricity in Tasmania. How do you feel about that as a company which trades in renewable electricity having a competitor move into the Tasmanian market that is fossil fuel backed in a climate crisis?

Prof. O'KANE - First of all, we see any new competitor as a challenge. It's part of what Mr Clark just said: that we are rising to the challenge of managing competitors. It is what it is; it's coming. Do you want to talk a bit more about how we're responding, Mr Clark? We have been getting ready for this one?

Mr CLARK - We have. It is a great challenge for Aurora and our people. We welcome competition, competition ultimately drives better outcomes for consumers in all regions in Australia. We are no different. As to the bona fides of where Tas Gas come from, that is really not for me to comment but -

Dr WOODRUFF - It's in the name.

Mr CLARK - Name to be different shortly. But we take them seriously as a competitor. We believe that Tasmanians will stay and choose Aurora as their best service provider.

Dr WOODRUFF - Minister, do you accept that the majority of Tasmanians would find it horrifying that, at this point in the climate crisis, where there is global breakdown in lots of different systems, Tasmania would be allowing a fossil fuel-powered retailer to compete with our renewable energy company? Did you try to push back on this or do you accept it?

Mr DUIGAN - I would respectfully say that it is probably not much to do with the operations of Aurora Energy, which is the reason we are here today.

Dr WOODRUFF - They are a competitor of Aurora Energy. That is what they have just said.

Mr DUIGAN - They are a competitor, they are a private company and they are entering the electricity market in Tasmania. Competition, as the CEO has said, is good, ultimately, for Tasmanian energy consumers. Tas Gas is already active in our market -

Dr WOODRUFF - You are comfortable about fossil fuel power entering into the clean-green renewable State of Tasmania?

Mr DUIGAN - Tas Gas can probably see a need to look at future opportunities for their business. Clean-green Tasmanian energy is absolutely -

Dr WOODRUFF - So they're going to rebrand and get rid of the word 'gas' from their name but they're not going to be changing their source of electricity generation?

Mr WINTER - I think they're planning to be a retailer, not a generator.

Dr WOODRUFF - They've got to come from generation somewhere, Mr Winter. That's a pretty obvious connection.

Dr WOODRUFF - Minister, I want to get a bit more information about Tas Gas coming in as a retailer. You seemed to suggest that they wouldn't be retailing anything to do with gas. Can you explain what you think is going to happen in that situation?

Mr DUIGAN - Tas Gas is already a gas retailer -

Dr WOODRUFF - Yes, I understand that.

Mr DUIGAN - Tas Gas will enter the market, as I understand it, noting that Tas Gas is a private company, and has nothing to do aside from being a competitor with Aurora Energy selling clean-green Tasmanian energy generated here on the island as a retailer.

Dr WOODRUFF - They will be becoming a competitor. Does Tas Gas get any subsidies from the Tasmanian Government?

Mr DUIGAN - Not as I am aware, no.

Dr WOODRUFF - What is the contract we have with them? What is the length of contract we have with Tas Gas?

Mr DUIGAN - I don't have any of that detail in front of me. I can't comment as to whether there is a contract.

Recent Content