COMPETITION HELPS ENSURE QUEENSLAND’S ELECTRICITY PRICES REMAIN AFFORDABLE
Published Tuesday, 19 June, 2007 at 12:58 PM
JOINT STATEMENT
Premier and Minister for Trade
The Honourable Peter Beattie
Minister for Mines and Energy
The Honourable Geoff Wilson
Householders in Queensland will begin to enjoy the benefits of full competition in the electricity market from July 1st the Premier said today.
“The good news for householders and business is that the major retailers are now offering discounts and benefits as high as 10 per cent,” Mr Beattie said.
“While the drought is having an impact on the cost of electricity it is reassuring to know that competition will be doing its job – keeping prices down.
“The big players have given an assurance they will offer good deals on cheaper electricity when full retail competition starts in a couple of weeks.
“Origin expects customers will be offered benefits of between five to ten per cent on the set rate; AGL will also offer benefits, while another big retailer, Integral, has already advertised discounts of up to ten per cent.
The Premier also announced today the introduction of a new voucher system for people in need and increased pensioner rebates.
“The pensioner and seniors rebate will increase by 11.37 per cent and we will also introduce a $3 million voucher system to help customers in crisis who are unable to pay their bill.
“Families in crisis sometimes need assistance from welfare organisations to keep the lights, heating and cooking appliances on.
“Energy Minister Geoff Wilson will meet later today with his Ministerial Consumer Consultative Committee to discuss the new voucher system.
“On top of this, we want to make sure that people, no matter where they live, will not be hit hard in the hip pocket.
“That’s why we subsidise the cost of electricity for people who live in rural and remote areas,” he said.
“We set aside more than $360 million last year to help households and businesses in regional Queensland - an average of around $580 a year for every Ergon Energy customer. That subsidy will now increase,” Mr Beattie said.
The Queensland Competition Authority (QCA) has set a ceiling for electricity in Queensland at 11.37 per cent, but the Premier said competition among major electricity retailers would mean prices would be kept lower in the competitive market than the maximum price ceiling set by the QCA.
“The independent regulator argues that the severity of the drought means it must set a ceiling at 11.37 per cent,” Mr Beattie said.
“New electricity pricings in other states have seen a 16.7 per cent increase in the ACT and a 24 per cent rise over three years in New South Wales.
“While the ceiling represents the absolute maximum any retailer can charge, competition will mean most families can keep the increase in their electricity account to a minimum,” Mr Beattie said.
Minister Wilson said the drought in south east Queensland was the worst in recorded history.
“It’s had an impact on the cost of generating electricity not only in Queensland, but in the ACT, New South Wales, Victoria, and in the Snowy Mountains Hydro Electric Scheme.
“Another reason for the rise is the massive amount we have invested in energy infrastructure to strengthen the electricity network in our booming economy.
“Almost $6.2 billion is being invested in infrastructure over five years to 2010 so that people who live and work in Queensland have a reliable and secure power supply.
“On top of that, we’ve had to cope with a shortage of skilled labour and huge hikes in the cost of materials used in building poles, wires and infrastructure,” Mr Wilson said.
“We are all under increasing pressure from the drought. Queensland is not alone.
“But we will not turn our back on farming families struggling to make ends meet in the drought, or the family-run nursery business in Brisbane for that matter.
“On the upside, full retail competition will create opportunities for households and small businesses to take advantage of the discounts and cheaper deals on offer.
“Clever retailers will want to keep their customers, not lose them. The best advice is for customers to shop around for the best deal,” he said.
The Minister said despite the Queensland Competition Authority’s ruling, the cost of electricity would still be reasonable for households and businesses in Queensland.
Tuesday June 19, 2007
Media Inquiries:
Premier’s Office – 3224 4500
Minister’s office - 3225 1819
“The good news for householders and business is that the major retailers are now offering discounts and benefits as high as 10 per cent,” Mr Beattie said.
“While the drought is having an impact on the cost of electricity it is reassuring to know that competition will be doing its job – keeping prices down.
“The big players have given an assurance they will offer good deals on cheaper electricity when full retail competition starts in a couple of weeks.
“Origin expects customers will be offered benefits of between five to ten per cent on the set rate; AGL will also offer benefits, while another big retailer, Integral, has already advertised discounts of up to ten per cent.
The Premier also announced today the introduction of a new voucher system for people in need and increased pensioner rebates.
“The pensioner and seniors rebate will increase by 11.37 per cent and we will also introduce a $3 million voucher system to help customers in crisis who are unable to pay their bill.
“Families in crisis sometimes need assistance from welfare organisations to keep the lights, heating and cooking appliances on.
“Energy Minister Geoff Wilson will meet later today with his Ministerial Consumer Consultative Committee to discuss the new voucher system.
“On top of this, we want to make sure that people, no matter where they live, will not be hit hard in the hip pocket.
“That’s why we subsidise the cost of electricity for people who live in rural and remote areas,” he said.
“We set aside more than $360 million last year to help households and businesses in regional Queensland - an average of around $580 a year for every Ergon Energy customer. That subsidy will now increase,” Mr Beattie said.
The Queensland Competition Authority (QCA) has set a ceiling for electricity in Queensland at 11.37 per cent, but the Premier said competition among major electricity retailers would mean prices would be kept lower in the competitive market than the maximum price ceiling set by the QCA.
“The independent regulator argues that the severity of the drought means it must set a ceiling at 11.37 per cent,” Mr Beattie said.
“New electricity pricings in other states have seen a 16.7 per cent increase in the ACT and a 24 per cent rise over three years in New South Wales.
“While the ceiling represents the absolute maximum any retailer can charge, competition will mean most families can keep the increase in their electricity account to a minimum,” Mr Beattie said.
Minister Wilson said the drought in south east Queensland was the worst in recorded history.
“It’s had an impact on the cost of generating electricity not only in Queensland, but in the ACT, New South Wales, Victoria, and in the Snowy Mountains Hydro Electric Scheme.
“Another reason for the rise is the massive amount we have invested in energy infrastructure to strengthen the electricity network in our booming economy.
“Almost $6.2 billion is being invested in infrastructure over five years to 2010 so that people who live and work in Queensland have a reliable and secure power supply.
“On top of that, we’ve had to cope with a shortage of skilled labour and huge hikes in the cost of materials used in building poles, wires and infrastructure,” Mr Wilson said.
“We are all under increasing pressure from the drought. Queensland is not alone.
“But we will not turn our back on farming families struggling to make ends meet in the drought, or the family-run nursery business in Brisbane for that matter.
“On the upside, full retail competition will create opportunities for households and small businesses to take advantage of the discounts and cheaper deals on offer.
“Clever retailers will want to keep their customers, not lose them. The best advice is for customers to shop around for the best deal,” he said.
The Minister said despite the Queensland Competition Authority’s ruling, the cost of electricity would still be reasonable for households and businesses in Queensland.
Tuesday June 19, 2007
Media Inquiries:
Premier’s Office – 3224 4500
Minister’s office - 3225 1819