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🇦🇺 Australia /Economy & Trade

NT power, water and sewerage prices increase by 5.3 per cent from today

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Northern Territory residents face a 5.3% increase in power, water, and sewerage prices starting today.
  • This rise is higher than last year's 3% increase and exceeds wage growth forecasts.
  • The government attributes the hike to inflation and increased gas costs, despite subsidies.

Power, water, and sewerage prices in Australia's Northern Territory will increase by 5.3 percent from today, a steeper rise than the 3 percent hike experienced last financial year. The territory's three major utilities are publicly owned, with price changes dictated by the government treasurer.

When we were formulating the budget, we do projections on CPI ... and they're printed in our budget papers at 5.2 per cent [for the year to June].

— Bill YanTreasurer Bill Yan explaining the basis for the price increase.

Treasurer Bill Yan stated the 5.3 percent increase aligns with the 5.2 percent inflation forecast for June in the NT budget. While the official June Consumer Price Index (CPI) figure is pending, inflation in Darwin rose by 3.9 percent in the year to May. Yan explained that the tariff adjustment was based on budget projections, with a minimal 0.1 percent difference from the forecast.

Despite the price increase for consumers, the NT government is also increasing its subsidy for these services by over $58 million to $252 million for 2026-27. Yan emphasized that without this community service obligation subsidy, residential power prices would jump by 74 percent, costing households an additional $2,000 annually.

As we were working out what the forecasts were going to look like, we landed at 5.3 per cent for our [power] tariff changes.

— Bill YanTreasurer Bill Yan detailing the calculation for the tariff adjustment.

The increased subsidy is attributed to higher gas prices the government is paying suppliers. A shortfall from Eni's Blacktip gas field, originally expected to supply the NT until 2031, has forced the government to purchase more expensive emergency gas from exporters like Santos and Inpex. The government anticipates cost reductions once gas from the Beetaloo Basin becomes available later this year.

So, there's a 0.1 per cent difference between those figures, which is absolutely minimal.

— Bill YanTreasurer Bill Yan downplaying the difference between projected and actual inflation figures.

Opposition Leader Selena Uibo criticized the price hike, arguing the government should have increased the community service obligation subsidy further. The 5.3 percent price increase also surpasses the 2.6 percent wage growth forecast released in May's budget.

If we took away the the community service obligation, people's residential power prices would increase by 74 per cent.

— Bill YanTreasurer Bill Yan highlighting the impact of government subsidies on power prices.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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