May 31, 2017
The State Government plans to halve the rise in regional electricity prices recommended by the Queensland Competition Authority (QCA).
But the move still means regional power bills will rise by 3.3 per cent instead of 7.1 per cent.
Treasurer Curtis Pitt said the QCA’s final determination for electricity prices for regional Queensland in 2017-18 – released on Wednesday – was unacceptable.
“(In the) 2017-18 Budget in two weeks, we will invest $770 million over three years to back consumers and lower electricity prices from what the QCA has announced,” Mr Pitt said.
“This is also a good result for a typical small business, which will now see a much smaller increase of 4.1 per cent instead of the QCA’s 8.2 per cent, resulting in a saving of around $90,” Mr Pitt said.
Mr Pitt said the State Government had also directed Energy Queensland to reduce network charges and to remove the costs of the solar bonus scheme from network charges until at least 2020.
“I have written to retailers in the south-east outlining my very clear expectation that these network cost savings are passed through in full,” Energy Minister Mark Bailey said.
“I want to make it clear that this change will not impact payments to eligible customers under the State’s solar bonus scheme, it merely means the costs of the scheme will be met by the government instead of consumers over the next three years.
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Earlier in the day, the Queensland Farmers Federation said rural and regional Queensland had been betrayed by the QCA.
“In the QCA draft determination our sector was assured that price increases for irrigation tariffs (62, 65 and 66) would be in line with the CPI at 1.7 – 1.9 per cent,” QFF president Stuart Armitage said.
“Instead farmers have been slugged with increases on their electricity bills of up to 10.3 per cent; four and half times more than CPI.
“Queensland farmers have been slugged with consecutive unsustainable electricity price increases for over a decade.”
A few hours after the QCA released its determination, Treasurer Curtis Pitt directed the QCA to revisit its figures and make a final price determination on June 16.
“We acknowledge and thank the Queensland Government’s commitment not to pass on the full increase, however the continued uncertainty remains a frustration for our entire sector,” Mr Armitage said.
“Despite the assurances from our politicians, there appears to be no reprieve from these unsustainable price increases.
“Some of our farmers now face the reality that the only way to keep their businesses viable is to abandon the grid, which negatively impacts all remaining customers.
“When governments fail to offer solutions, solutions are forced upon industry.
“The issue of electricity prices is not confined to one level of government or one political party. It is a systemic failure of the highest order that permeates all levels of elected officials and government mechanisms.”
