December 11, 2013
Queenslanders face electricity price rises of between 5.4 per cent and 13.6 per cent next financial year.
The Queensland Competition Authority (QCA) today released its Draft Determination for 2014-15 electricity tariffs – with one forecast including the Carbon Tax and one which does not.
If the Carbon Tax is not repealed, the QCA has forecast that average Queensland household electricity bills will rise by $192 in 2014-15.
But even if it is repealed, average power bills will still rise by $76.
Small businesses will pay an extra $253 or $152 if the Carbon Tax is abolished.
The latest recommended increase follows last year’s 21.4 per cent rise.
Outside the carbon tax, the QCA says bulk of the increases will come from solar feed-in tariffs and network charges which are believed to account for about 70 per cent of the “typical Tariff 11” for residential bills.
The State Government has already reduced the solar feed-in tariff from 44 cents to 8 cents for new customers.
The QCA warned that the cost of the Solar Bonus Scheme will double in 2014–15, adding another $57 to household bills.
The QCA also said that while “poles and wires”, ie electrical infrastructure, no longer account for the largest increase in costs, networks are still likely to add $50 to the typical bill.
The cost of generating electricity is expected to rise by 29 per cent in 2014–15, adding $68 to the bill paid by the typical residential customer.
Queensland Treasurer Tim Nicholls acknowledged the draft determination would be “unwelcome news”.
He called for the Federal Government to immediately scrap the Carbon Tax, saying it would deliver Queensland families an immediate saving of $116 from July 1 next year.
Energy Minister Mark McArdle said the State Government was looking at the poles and wires side of the business with a view to “cutting that cost down significantly”.
“$1.7 billion over three years will be removed from the poles and wires,” Mr McArdle said.
“Under the first year of the LNP, power bills went up by more than $140 on average, this year they are going up a record $268 on average and now the QCA have confirmed that bills next year are going up by $192 on average,” Opposition Treasury spokesman Curtis Pitt said.
“The Carbon Tax and green schemes existed when Campbell Newman made his election contract with Queenslanders to lower their electricity bills. Now he is attempting to use them as a convenient excuse for breaking his promise.
“The Treasurer is trying to mislead Queenslanders into thinking that the Carbon Tax is causing half of the bill increase in 2014-15.
“This is simply untrue.
“If you look at the independent QCA figures bills would only rise by 3 per cent if only the carbon tax and green schemes were a factor – not 13.6 per cent.
“The blame for this electricity price slug rests squarely at the feet of Campbell Newman.”
Electrical Trades Union State Secretary Peter Simpson said the State Government had been elected on a promise to reduce cost of living pressures and had failed miserably.
“To blame the carbon tax and infrastructure spending is simplistic and shallow,” he said.
