Media Release

Peter Gutwein MP
Shadow Treasurer
Shadow Minister for Energy

Sunday 13th June 2010

What is Going On with Aurora?

The Treasurer appears to now not be going to make a statement on Aurora this week.

This is not good enough.

The Premier has said that he expects that energy prices will rise and that the Government can no longer afford the 5% cap on energy prices they promised.

Furthermore, the Minister for Energy, Bryan Green, has refused to rule out Aurora, or any of the two other energy businesses, requiring either an equity injection, debt swap or other financial assistance.

It now appears the Treasurer will try and slip out any bad news under cover of Budget week, with the budget due next Thursday.

The only conclusion that you can take from this, is that the Treasurer's statement on Aurora will be full of very concerning news.

Not only will Tasmanians not receive the 5% cap on power prices, it looks like the State finances will suffer given that it's fairly obvious that Aurora is in financial difficulty.

Aurora is effectively a regulated monopoly, selling power to well over 90% of customers in Tasmania. Yet under Labor, Aurora appears to be struggling.

Labor's energy policy has failed and now ordinary Tasmanians as well as small businesses will pick up the pieces through higher prices and reduced services.