Deregulation deferred as Productivity Commission conducts power price probe

The Palaszczuk Government is rolling out another key election commitment and establishing a Queensland Productivity Commission with its first task to be conducting a public inquiry into electricity prices in Queensland.

Treasurer Curtis Pitt said that during the election campaign, Labor promised to deliver an expert independent body to review complex economic and regulatory issues and propose policy reforms to government.

Mr Pitt said all of the Commission’s reviews would be undertaken by independent experts through an open and transparent process informed by widespread public consultation.

“It will tackle issues such as housing affordability, clean energy, industry and consumer regulation, regional development and Indigenous economic development,” he said.

“The resulting recommendations will contribute to the development of new policies aimed at boosting economic growth and delivering higher living standards for all Queenslanders.

“The Commission will raise the bar for economic decision making and will take on a similar set of roles and functions as the Australian Productivity Commission and the Victorian Competition and Efficiency Commission.”

Energy Minister Mark Bailey said the electricity price review would need to balance a range of competing interests and seek to protect the interests of consumers.

“The review will also take into account the need for a competitive electricity market, efficient investment in infrastructure and good environmental outcomes,” Mr Bailey said.

“To enable the Queensland Productivity Commission to do its job effectively, the previous LNP Government’s decision to deregulate retail electricity prices in south east Queensland will be placed on hold for 12 months.

“This way, input can be sought from the community, businesses, industry and key stakeholders so that the final deregulation model is in everyone’s best interests.”

Mr Bailey said the Queensland Competition Authority would continue to set electricity tariffs for households and small businesses for the next financial year.

“We will have stronger consumer protection measures in place from 1 July to ease the financial burden on vulnerable Queenslanders,” he said.

“These measures, under the National Energy Customer Framework, will provide greater protections for energy customers in financial hardship. There will also be improved protection for Queenslanders living in retirement villages and caravan parks.

“Among the changes, electricity retailers will be required to inform their customers ahead of any price changes, with exit fees for leaving an electricity contract capped at $20.

“Ultimately, we want to ensure that vulnerable Queenslanders have the protection they need when times are tough.”

Mr Pitt said the Queensland Productivity Commission would be asked to deliver an interim report, with a focus on retail deregulation.

“For some time many regional Queenslanders have been asking for greater choice on electricity contracts,” he said.

“The QPC will consider retail competition for regional parts of the state and as a result we may see more people entering market contracts and getting a better deal.”

Media Contact:
Treasurer’s Office 0427 919 548
Minister Bailey’s Office 0438 768 734