The six percent increase in electricity costs is not the last for the year.

The Office of the Tasmanian Economic Regulator, in its draft report on electricity price investigations, proposed an average increase of 10.6 percent for customers. Additional increases of 1.6 and 3.1 percent were proposed to be implemented in the following two years.

Chairman Glenn Appleyard of the Tasmanian Economic Regulator said the figures are “a comprehensive independent assessment of the energy purchase costs and retail costs that Aurora (Energy) is facing.” He claims half of the overall increase make up Aurora's purchase costs.

The July increase covers the transmission and distribution costs. Tasmanian tariff customers can comment on the draft before the September 17 deadline. The final decision and the final report will be released by the end of October.

Meanwhile, close to 79,000 Tasmanian concession card holders are seeking the release of the $100 rebate promised by the Tasmanian Government. An election promise of putting a 5 percent cap on electricity prices was canceled after Aurora posted an unfavorable financial situation.

Treasurer and Minister for Industry Michael Aird said the Government will make an announcement on the rebate in the near future. The Tasmanian 2010 - 2011 budget focuses on maintaining the state's “record of strong financial management” and “record of delivering on election commitments.”