February 26, 2017
Electricity prices look set to rise again in regional Queensland.
Small business bills are expected to rise by 1.5 per cent, household bills by 1.7 per cent, and farmers and irrigators by a maximum of 1.9 per cent in the coming financial year.
Energy Minister Mark Bailey said that while nobody liked a price rise, the latest draft decision by the Queensland Competition Authority reflected “the price stabilisation the Palaszczuk Government has been able to achieve”.
“The QCA’s draft determination shows that over the first three years of the Palaszczuk Government the forecast increase in the average residential electricity bill will be just 3.6 per cent, compared to 43 per cent price surge over the three-year term of the Newman-Nicholls government,” Mr Bailey said.
“This shows that under Labor prices are continuing to stabilise. The report also revealed restrained network costs had held down the increase in electricity prices.
“This is a direct result of the Palaszczuk Government’s intervention, by directing Energex and Ergon to not appeal the Australian Energy Regulator’s decision to curb network costs.
“We were able to do this as a result of Labor’s commitment to keep our energy businesses in government hands.”
Mr Bailey said for the second year running, the fixed charge would also reduce.
“This is good news for low energy-consuming customers, by giving them even more ability to control their electricity costs,” he said.
However, he emphasised the QCA determination was only a draft and did not capture the wholesale price impacts of recent extreme heatwaves.
“I encourage stakeholders to review the draft decision and provide feedback before April 3 through the QCA website,” Mr Bailey said.
“The final decision will be published by May 31, with prices to apply from July 1, 2017.”
Mr Bailey said the Palaszczuk Government would continue to subsidise regional Queensland electricity prices, with more than $560 million allocated in 2016-17 to ensure that 700,000 customers across regional Queensland paid a similar amount for their electricity to those in south-east Queensland.
“To further support business customers in regional and rural Queensland, the Palaszczuk Government is also offering a $10 million assistance package over two years which will help a range of customers including farmers and irrigators, as well as energy-intensive businesses such as traditional manufacturing,” Mr Bailey said.
