Dr Anthony Lynham
June 21, 2019
Farmers and businesses on obsolete or transitional electricity tariffs have been given an extra year to move to new tariffs.
On Friday, Energy Minister Dr Anthony Lynham said 30,000-plus Ergon customers still using obsolete or transitional electricity tariffs – some more than 25 years old – will now have until June 30, 2021, to move.
“We’ve listened to our regional businesses and farmers and we’ve given them another year to make the move that’s been underway now for six years,” Dr Lynham said.
“For some of them, that’s going to mean significant savings this year.”
Mr Lynham said the extra year would give farmers and regional businesses more time to look at power-saving options, such as how and when they use electricity, or installing more efficient irrigation pumps, refrigeration systems, LED lighting or solar panels.
“It also will give businesses more time to understand the package of tariff options Ergon Energy has been working on with these regional customers now for some time,” he said.
“I strongly encourage all regional businesses on transitional or obsolete tariffs to contact Ergon Energy to check what the right tariff is for their particular circumstances.”
The Queensland Competition Authority started phasing out obsolete and transitional regional retail tariffs in 2012.
From July 1, 2019, no new customers will be able to sign up for them.
The seven tariffs date back many years, some back to pre-1993, and are not based on the cost of supplying electricity through the network.
Dr Lynham said Ergon Energy and the Department of Natural Resources, Mines and Energy have been working with farmers and businesses to help them transition to tariffs that best meet their needs.
“We’ve invested $30 million across a range of programs and initiatives to help business adopt energy efficiency measures and reduce power costs,” he said.
“We understand working out complex electricity tariff structures is not core business for farmers or small businesses.
“Extending the deadline will give them more time to make the most informed decision.”
Dr Lynham said regional electricity prices are about to fall for the second year in a row.
“Typical regional power prices fell this year and will fall again from July 1,” he said.
“All up, over two years, a typical small business will have saved $230 and a typical household, $82.”
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QFF President Stuart Armitage welcomed the State Government announcement but noted the extension only applied to customers on the Ergon network.
“The government has failed to consider the many farmers and businesses operating in south east Queensland who will be unfairly disadvantaged because they are on the Energex network and therefore unable to access this extension,” Mr Armitage said.
“For farmers, this is yet another frustration in a process that has continually caused anguish with a lack of clarity on what tariffs would be suitable for irrigation and other agricultural-specific operations, and the significant bill increases some farmers will face when moving to standard business demand-based tariffs.
“After remedying this disappointing omission, the government must use this additional time to develop a suite of suitable tariffs and a genuine transition program for farmers required to move to standard business demand-based tariffs.”
“If action is not taken, unsustainable electricity price increases and lagging productivity will result in more expensive food, fibre and foliage and a further loss of the international competitiveness of Queensland’s farmers.”
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- QFF Says New Electricity Tariffs Could Cause Farm Costs To Soar
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