June 17, 2013
The State Government is moving to allow the market to set electricity prices in south-east Queensland, although for the time being prices in regional areas serviced by Ergon will continue to be fixed by the Queensland Competition Authority.
Energy Minister Mark McArdle said today the changes would be subject to “satisfactory consumer protection and engagement” and should increase competition “with better outcomes for customers in terms of choice, efficiency and customer service”.
The government plans to monitor prices after the market is deregulated from July 1, 2015.
Mr McArdle said the QCA would continue to set prices for the Ergon area “while the government finalises a strategy for introducing competition into regional Queensland”.
“Customers in the Ergon area benefit from more than $600 million in price support through the Uniform Tariff Policy and further work is required before full retail competition can be introduced to regional Queensland,” he said.
Mr McArdle said the new system was currently used in Victoria and South Australia and “allows consumers to compare prices and shop around”.
“This model encourages electricity retailers to offer the best price because they are aware that customers can compare prices and change if they can find a better offer,” he said.
“Price regulation has not kept prices down. Removing it will drive more competition and more offers for customers.”
