Information about competition and contestability

Is there competition in the Tasmanian electricity market?

With full retail competition commencing on 1 July 2014, all customers on mainland Tasmania have had the option of entering into a market retail contract with Aurora Energy or a new entrant retailer. Regulated standing offer prices are still available for small business customers who were non-contestable prior to 1 January 2014. 

Which customers are open to competition?

The table below shows the timeline of competition introduction to groups of business customers (known as 'tranches') according to electricity consumption per site in a 12 month assessment period.

Contestable Customer Type Tranche Annual consumption 
at one site*
Approximate annual 
spend at one site
Year contestability
Small Customers Tranche 5 < 50 MWh per year under $10,000 per year 1 July 2014
Tranche 5a ≥ 50 MWh per year over $10,000 per year 1 July 2011
Large Customers Tranche 4 ≥ 150 MWh per year over $30,000 per year 1 July 2009
Tranche 3 ≥ 750 MWh per year over $80,000 per year 1 July 2008
Tranche 2 ≥ 4,000 MWh per year over $400,000 per year 1 July 2007
Tranche 1 ≥ 20,000 MWh per year over $2 million per year 1 July 2006

* 1MWh is equal to 1,000KWh.

What does 'contestability' mean?

The introduction of competition into the electricity market is called ‘contestability' and gives customers the opportunity to choose their retailer and enter into an electricity contract with them. These are called ‘contestable' customers because different retailers can ‘contest' for their business by offering contracts.

Do all contestable customers have the same options?

No. Tranche 1 to Tranche 4 customers are classed as Large Customers, while Tranche 5a and 5 customers are called Small Customers.

The two groups have slightly different regulations applied to them. The main differences are that large customers must have an interval meter, while small customers have the option to remain on their tariff and do not need an interval meter. 

Find out more

Find out more about options for small business customers