Families to benefit from electricity reforms

Published Wednesday, 10 September, 2014 at 08:26 PM

Minister for Energy and Water Supply
The Honourable Mark McArdle

Electricity customers in south east Queensland will benefit from more choice, greater competition and stronger consumer protections under landmark legislation designed to put downward pressure on electricity prices.

Energy Minister Mark McArdle said amendments to the Electricity Act 1994 passed by Queensland Parliament will mean the Queensland Competition Authority will no longer regulate electricity prices in south east Queensland from 1 July, 2015.

“Our key reforms will increase competition in the state’s electricity retail sector – starting in the highly competitive southeast – with better outcomes for customers in terms of choice, service and prices,” Mr McArdle said.

“Price regulation failed because Labor guaranteed a high rate of return on gold-plated poles and wires and economically-irresponsible green schemes – the cost of which was simply passed on to families as higher electricity prices,” he said.

A recent report by the Australian Energy Market Commission (AEMC) reinforced a study done by the St Vincent de Paul Society that found consumers could save up to $475 a year by shopping around.

The Queensland Competition Authority (QCA) will continue to monitor the market, helping consumers to better understand and take advantage of the choices on offer, and keeping the government fully informed about how the market is developing.

Mr McArdle said the introduction of market monitoring was central to PowerQ: a 30 year strategy for Queensland’s electricity sector.

“Retail price regulation will continue in regional Queensland until it is ready for the introduction of competition. We understand that regional Queenslanders also want greater choice and we are investigating ways to ensure they see the benefits of competition while continuing to receive subsidised electricity,” Mr McArdle said.

All Queensland electricity users will benefit from stronger consumer protections from 1 July 2015 - with the Queensland Government signing up to the National Electricity Customer Framework (NECF), including:

  • improving consumer protections, especially for those experiencing financial difficulty and hardship;
  • ensuring all eligible older Queenslanders living in retirement villages and caravan parks have better access to concessions and rebates, including the pensioner electricity rebate of more than $320/year;
  • reducing red tape by adopting nationally harmonised laws for customer protection;
  • ensuring reticulated natural gas users have similar protections to electricity users; and
  • requiring retailers to inform customers in advance of any price changes and also offer retail products without exit fees.

“These reforms are a key part of the Newman Government’s strong plan to stabilise electricity prices from 2015-16, make it a fairer for everyone - and prepare for the future,” Mr McArdle said. 

Customers looking to find out about the range of options currently available can use the QCA’s price comparator available athttp://comparator.qca.org.au/

Further information on the Queensland Government’s electricity sector reforms is available at http://www.dews.qld.gov.au/policies-initiatives/electricity-sector-reform

 

[ENDS] 10 September 2014

Media Contact: Phil Hind 0437 334 183