Joint Statement on Electricity Prices

The independent regulator, the Queensland Competition Authority (QCA), has determined the price rise for general household electricity will be set at 22.6 per cent.

Treasurer Tim Nicholls said the decision was a further blow for consumers but the QCA had limited room to move, with almost 70 per cent of the price increase determined by network costs and green schemes locked in three years ago.

“Network costs controlled by the Australian Energy Regulator account for almost 47 per cent of this increase,” Mr Nicholls said.

Energy and Water Supply Minister Mark McArdle said the Federal Labor Government’s carbon tax and green schemes, along with the former Labor Government’s solar bonus scheme, were the real drivers of the increases.

“The former Labor State Government’s solar bonus scheme was no bonus at all. It is a Labor $3 billion solar tax on 80 per cent of Queensland consumers. By 2015-2016 this is going to cost Queensland households an extra $276,” Mr McArdle said.

Mr McArdle said the Federal Labor Government could take immediate action to provide relief.

“If the Federal Labor Government scrapped the carbon tax and the rest of the Labor green schemes, Queenslanders would have savings of about 15 per cent on their bills,” he said.

Given this year’s massive write-downs in government revenue, Mr Nicholls said the government could not afford to pay all consumers an electricity rebate.

“What we will be doing is helping those most in need by spending $136 million in the coming year to help pensioners, seniors and concession card holders with their power costs,” he said.

“The Government is also doubling the Home Energy Emergency Assistance budget to $10 million to ensure low income households can get an emergency payment of up to $720 if needed.”

Mr McArdle said the Newman Government was committing to a reform program for implementation in 2013-2014 that included the necessary major structural reform to reduce cost drivers of electricity prices.

Mr Nicholls said a range of other cost of living measures had been introduced by the Government to try to limit the impact of price increases.

He said the measures included:

• $132.3 million over three years to freeze car registration fees for more than 2.5 million family vehicles
• $917 million over three years to reinstate the principal place of residence concessional rate for stamp duty, providing savings of up to $7,175 when buying a home
• $158.2 million over four years to halve public transport fare increases due in 2013 and 2014
• $39 million over four years to reward regular commuters by reintroducing free travel on the Translink network after nine journeys in a Monday to Sunday week

Mr Nicholls said the decision by the QCA made it all the more important that consumers checked they were getting the best deal from electricity retailers.

[ENDS] 31 May 2013

Media Contact: Treasurer’s Office (07) 3224 6900; Minister McArdle’s Office (07) 38963691