No plans to compete for work from licensed electrical contractors

Published Wednesday, 20 April, 2016 at 08:24 PM

Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport
The Honourable Curtis Pitt

The Palaszczuk Government has no plans for a merged power distribution company to compete for work from existing licensed electrical contractors who do solar or electrical work at the household level, Treasurer Curtis Pitt said. 

“While the final direction and business model for the overall merger of Ergon and Energex is still being finalised, we can assure contractors that the energy services business is expected to offer new services where there are limited service suppliers or resources available to customers such as in remote areas of Queensland including Indigenous communities,” he said. 

“It is envisaged that the focus of the energy services business will be on new and innovative products and services and expanding the overall market, particularly in regional Queensland. 

Mr Pitt said the LNP were shameless and cynical in playing on the fears of electrical contractors, and their hypocrisy on asset sales has been exposed.

“If the LNP had its way, power distribution bodies Ergon and Energex would be up for sale and their new owners would be free to do what they like including using their size and scale to compete against anyone operating in the energy sector,” Mr Pitt said. 

“LNP MPs who are now trying to stir up a fear campaign among electrical contractors should admit that the only response an LNP government would give them would be to wish them luck in their dealings with the big private power companies. 

“Instead the Palaszczuk Government has kept Ergon and Energex in public ownership as we promised. 

“In addition we are merging both organisations — again, as we promised — to deliver efficiencies and savings that benefit taxpayers. 

“Because we have kept Ergon and Energex in public hands we are able to give assurances to contractors about the future roles of the merged Ergon/Energex and its energy services arm. 

“The energy services division will look at how the energy network – as a whole – can embrace new technologies, such as solar battery storage, smart metering, large-scale commercial solar and other renewables. 

“It is also expected to deliver up to 500 new jobs over the next decade – the vast majority in regional Queensland. 

“Once again, the likely outcome of the LNP’s sale of Ergon and Energex would be fewer employees to fatten the bottom line which means fewer pay packets in regional centres. 

“We saw under the LNP Government how badly their job cuts hit at local regional and our state economies as people who were savagely sacked stopped their spending. 

“At the time of the Mid-Year Fiscal and Economic Review I made it very clear that the new energy services division was about creating the type of government-owned energy business that Queenslanders will need 30 years from now.

“The government greatly respects the work of master electricians and they have been at the frontline of rolling out hundreds of thousands of solar installations over the last several years across all parts of Queensland as a result of Labor’s solar incentives.

“This market is very competitive and well serviced by existing contractors. 

“This work will continue and their relationship with the merged Ergon and Energex will continue, as will the other valued electrical work they do in the homes of Queenslanders. 

“We will continue to work with key stakeholders, including the Master Electricians Australia and relevant electrical contractor associations during the merger process and discuss the opportunities that exist for the merged Ergon-Energex to work with electricians and retailers to grow the industry,” Mr Pitt said. 

Contact: 0447 316 432