Green costs driving up electricity prices

Queensland electricity prices are 18.9% higher because of the impact of green schemes and the Carbon Tax, Energy Minister Mark McArdle revealed today.

Mr McArdle said advice received from the Queensland Competition Authority (QCA) identified that the Commonwealth Government’s Renewable Energy Target (RET) Scheme adds $102 to an average electricity bill and the Solar Bonus Scheme currently costs $67.

“When you add $190 for the Carbon Tax this means 18.9% of an average $1900 annual electricity bill is made up of green schemes,” Mr McArdle said.

“By 2015-16 the solar bonus scheme will increase to $276 on an average bill which could see the price of green schemes reach $621 on average per year if the Carbon Tax is not repealed.”

Mr McArdle said it was important for Queenslanders to understand what was driving up the price of electricity and why the Newman Government was looking at ways to reduce the impact of green schemes on households.

“The overly generous solar bonus scheme gave significant cash windfalls to those customers who installed solar PV on domestic roofs, but the scheme did not pass on the real costs to the electricity network, to support solar PV,” he said.

“It is not right that the 80% of customers who do not have solar are expected to pay the full price of the 20% who have solar.”

“Some customers with solar are getting a very generous $0.44 feed-in-tariff (FiT) and should make a fair contribution towards the upgrade of the electricity network needed to support their solar PV.”

Mr McArdle said the previous Government legislated the solar FiT until 2028 and this will cost other electricity consumers almost $3 billion to support.

“The Newman Government will not be changing this, but will consider a range of options to make the system more equitable for the majority of consumers.”

[ENDS]  30 May 2013

Contact:        Minister’s Office - 07 3896 3691
                    Danielle Keys - 07 3239 6626/0437 334 183