Palaszczuk Govt reforms continue electricity price stability in regional Qld

The Palaszczuk Government’s efforts to restrain and stabilise power prices are continuing for a third year following the release of the Queensland Competition Authority draft determination on regulated retail electricity prices for regional Queensland in 2017-18. 

Energy Minister Mark Bailey said while nobody likes a price rise, the latest draft decision on regional electricity bills reflects the price stabilisation that the Palaszczuk Government has been able to achieve after the 43 per cent price surge under the LNP.

The draft determination finds small business bills should only increase by 1.5 percent, households by 1.7 percent, and farmers and irrigators by a maximum of 1.9 percent in the coming financial year.

“The QCA’s draft determination shows that over the first three years of the Palaszczuk Government the forecast increase in the average residential electricity bill will be just 3.6 per cent, compared to 43 percent price surge over the three year term of the Newman-Nicholls government,” Mr Bailey said.

“This shows that under Labor prices are continuing to stabilise.

“The report also revealed restrained network costs had held down the increase in electricity prices.

“This is a direct result of the Palaszczuk Government’s intervention, by directing Energex and Ergon to not appeal the Australian Energy Regulator’s decision to curb network costs.

“We were able to do this as a result of Labor’s commitment to keep our energy businesses in government hands.  This wouldn’t have been possible if Tim Nicholls had his way to sell off our electricity assets.”

Mr Bailey said for the second year running, the fixed charge would also reduce.

“This is good news for low energy consuming customers, by giving them even more ability to control their electricity costs,” he said.

“The Federal Government’s Large Scale Renewable Energy Target (LRET) costs are set to increase, due to the extended period of policy uncertainty during the Federal RET review. That uncertainty meant very little investment occurred in renewable energy in Australia, and unfortunately the impacts continue to reverberate today.

“When the current Federal Government finally landed on a RET, it reduced its target which has set Australia apart from most countries who are increasing their ambitions on renewables and emissions reductions.

“It’s important to note this is only a draft and doesn’t capture wholesale price impacts of recent extreme heatwaves and the record high demand events in Queensland.

“I encourage stakeholders to review the draft decision and provide feedback before 3 April 2017 through the QCA website (www.qca.org.au). The final decision will be published by May 31, with prices to apply from 1 July 2017.”

Mr Bailey said that the Palaszczuk Government would continue to subsidise regional Queensland electricity prices, with over $560 million allocated in 2016-17 to ensure that 700,000 customers across regional Queensland pay a similar amount for their electricity to those in South East Queensland.

“The Palaszczuk Government is also helping households by extending electricity concessions that will help 157,000 extra Queensland families with a Commonwealth Health Care Card and asylum seekers save $330 a year on their energy bills," Mr Bailey said.

“To further support business customers in regional and rural Queensland, the Palaszczuk Government is also offering a $10 million assistance package over two years which will help a range of customers including farmers and irrigators, as well as energy-intensive businesses such as traditional manufacturing.

“This package will bring a range of measures to support regional businesses, including better access to digital metering and more information on tariff options and bill impacts to help customers reduce their electricity costs.

“Upon forming government we made a commitment to put downward pressure on electricity prices, and we continue to deliver on that commitment.

“These are responsible reforms that will provide a real benefit to the people of Queensland, particularly in our regions.”

ENDS 

Media contact: Zoe Russell - 0428 079 640