Water restrictions eased for power stations

Mines and Energy Minister Geoff Wilson said today that this summer may well be remembered as the summer when a hint of the wet season of old, returned to Queensland.

Minister Wilson said that even though the rain had brought mixed blessings, the dams had soaked it up.

“As a result, the Queensland Water Commission has decided to the ease water restrictions on Tarong North and Swanbank power stations,” Mr Wilson said.

“Tarong power station, the state’s biggest generator, now has plenty of water from the purpose-built Boondooma Dam, which is now around 50% capacity.

“Power stations rely on water to generate electricity as much as we rely on electricity to get on with our daily lives,” he said.

The Minister said the unprecedented drought had pushed the price of electricity up, not just in Queensland, but in all of eastern Australia.

“And that’s one of the reasons why the Queensland Competition Authority ruled early last year that the price cap on electricity should rise – to reflect the increase in the cost of supply,” he said.

“Last week, the Queensland Competition Authority announced a draft decision to increase the price cap by 7% from 1 July.

“Even though it’s less than the previous year, I’m concerned they may not have fully taken on board all the rain that fell across Queensland and other eastern states in recent weeks.

“I’m disappointed in the figure announced by the independent economic regulator and I’ve directed my Department to closely scrutinise it to make sure it reflects only genuine increases in the cost of supplying electricity.

“Two things have been happening at the one time in the electricity industry in Queensland.

"First, over the last few years the underlying cost of electricity has been driven up by the drought and the high costs of expanding the electricity network and this has pushed up the price cap on electricity for householders.

“Second, the market was opened up to retail competition which has seen electricity retailers offering householders discounts of up to 10% on their bills.

“While the underlying cost of electricity is rising, there are savings to be made and deals on offer for householders in the competitive market.

“Households in regional Queensland continue to be protected by the price cap – the uniform tariff – with a subsidy of $738 for the average householder who would otherwise be paying $738 more for their electricity.

“My advice to householders is to shop around and don’t stop till you get the best deal,” Mr Wilson said.

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