February 28, 2018
Power bills could be lower next year, but any drop isn’t likely to be dramatic.
On Wednesday, the Queensland Competition Authority (QCA) released its draft determination for regulated electricity prices for 2018-19, and says it could shave $35 off the typical annual household bill.
Consumers will also receive the $50 a year rebate promised by the Palaszczuk Government during the election campaign, bringing total savings to $1.63 a week.
“The annual notified price for a typical customer on the main residential tariff is expected to decrease by $35 from $1542 to $1507,” QCA chair Professor Roy Green said.
“For a typical customer on the main small business tariff, the annual notified price is expected to decrease by $110 from $2568 to $2458.”
A recent study found nearly half of businesses in regional Queensland are struggling to pay their power bills on time.
THE QCA says falling network costs are the main reason for the forecast price decreases of 2.3 per cent for residential customers on tariff 11 and 4.3 per cent for companies on tariff 20.
“Wholesale energy costs have also decreased by smaller amounts, but these reductions have been largely offset by higher Renewable Energy Target (RET) and prudential costs,” Prof Green said.
“It is important to note we set prices in accordance with the Queensland Government’s uniform tariff policy, which means most regional customers pay significantly less for electricity than it costs to supply.”
He said changes were likely in the final determination, which is due to be published by May 31.
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On Wednesday afternoon, Liberal National Party Leader Deb Frecklington said the QCA draft determination on regional electricity prices “can’t hide Labor’s great energy rip-off.”
“Labor can spin it all they like – Queenslanders are still paying more for electricity than they did under the LNP,” Ms Frecklington said.
“Electricity customers are being ripped off by the Palaszczuk Government.
“Last week the Auditor-General revealed Labor is snatching $583m a year out of its electricity companies – cash that comes straight from families and businesses.
“Prices are only stabilising now because the price-gouging operation of the state-owned Stanwell Corporation has been exposed.
“The LNP Government’s decision to end network gold-plating is also driving down network costs.
“Farmers won’t get a cent off their bills and many pensioners could end up paying more because of a jump in fixed fees.
“The plain truth is we’re paying too much for electricity because Labor is using the profits as a tax to plug their Budget black hole.”
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