MPs Confirm 22.6pc Power Rise

May 31, 2013

The State Government confirmed this afternoon that the Queensland Competition Authority (QCA) had determined that general household electricity prices should rise by 22.6 per cent.

Treasurer Tim Nicholls said the decision was a further blow for consumers but he said the QCA had limited room to move as “more than 70 per cent of the price increase (is) determined by network costs and green schemes locked in three years ago”.

“Network costs controlled by the Australian Energy Regulator account for almost 47 per cent of this increase,” Mr Nicholls said.

Energy Minister Mark McArdle blamed the Federal Government’s carbon tax and green schemes, and the former State Government’s solar bonus scheme, as the “real driver” of the increase.

“The former Labor State Government’s solar bonus scheme was no bonus at all. It is a Labor $3 billion solar tax on 80 per cent of Queensland consumers. By 2015-2016 this is going to cost Queensland households an extra $276,” Mr McArdle said.

He said the Federal Labor Government could take immediate action to provide relief.

“If the Federal Labor Government scrapped the carbon tax and the rest of the Labor green schemes, Queenslanders would have savings of about 15 per cent on their bills,” he said.

Mr Nicholls said that given this year’s massive write-downs in government revenue, the State Government could not afford to pay all consumers an electricity rebate.

“What we will be doing is helping those most in need by spending $136 million in the coming year to help pensioners, seniors and concession card holders with their power costs,” he said.

“The government is also doubling the Home Energy Emergency Assistance budget to $10 million to ensure low income households can get an emergency payment of up to $720 if needed.”

Mr McArdle said the State Government was committing to a reform program for implementation in 2013-2014 that included “the necessary major structural reform” to reduce cost drivers of electricity prices.