Keep your big stick energy bill away from our assets

Queenslanders are facing the prospect of the privatisation of their power assets and higher power bills under proposed Federal energy legislation by the Morrison Government.

The Palaszczuk Government raises these and other “critical” concerns in its submission to a Senate committee on the Morrison Government’s so-called ”big stick” legislation.

Energy Minister Dr Anthony Lynham said the Commonwealth’s proposed bill included the potential to provide for “privatisation by stealth”, which Queenslanders had made it very clear they opposed.  

“Queensland has the lowest average electricity prices of mainland states, reliable supply and a planned transition to a renewable future – because we own our power assets.

“We are concerned the powers in the proposed bill will interfere with how we operate those publicly-owned power assets to the detriment of Queensland consumers.

“On price, all energy ministers have expert independent advice from Australian Energy Market Commission that a “hard cap” default price idea will increase prices for some customers.  

“All the State energy Ministers in December agreed that a default price was bad for consumers, and to advance work on a completely different approach – a reference price for all retailers to benchmark their discounts against, so that customers can compare offers.

“I call on the Morrison Government to return to the drawing board with states and territories at the Council of Australian Governments (COAG) Energy Council.”

The Senate Select Committee on Economics is taking submissions on the bill until today.

Queensland’s submission details four concerns:

• the impact of uncertainty on investment decisions across the energy sector
• the potential for privatisation of assets;
• the impact of default prices on consumers; and
• the potential conflicts with Queensland legislation and policies.

Energy Minister Dr Anthony Lynham said it was outrageous that the Morrison Government had not consulted Queensland or other states and territories, which was “highly unconventional” in dealing with national energy law.

“All jurisdictions are concerned with any potential for market misconduct. However, any solution developed in isolation will be ineffective and likely to drive up costs and risks in the sector,” Dr Lynham says in his letter to the Senate committee,” he said.

“The Coalition Government are making it easier to privatise Queenslander’s assets; a framework that we simply cannot support.

“Major Australian energy businesses say they are delaying investment in new generation because of the uncertainty this legislation causes.

“That’s new generation that could help drive down electricity prices for Queenslanders.”

[ENDS]

Media inquiries: Jan Martin 0439 341 314