Help for households hit with electricity price hike

Mines and Energy Minister Geoff Wilson said today he was pleased that the independent market regulator, the Queensland Competition Authority, had accepted the State Government’s very strong argument that its proposed 7% increase in electricity charges was excessive.

“Queensland families are under increasing financial pressure so I’m pleased they’ve taken our strong submissions on board,” Mr Wilson said.

The Queensland Competition Authority (QCA) today announced a 5.38% increase in the maximum price cap for electricity, to take effect from 1 July this year.

“While no family will welcome the 5.38% increase, I am very pleased the QCA did not enforce a 7% increase,” he said.

Minister Wilson today announced a Consumer Action Plan to help ease the financial burden for pensioners and low income earners.

“We know they are doing it tough and we want to do all we can to ease the strain,” Mr Wilson said.

“If you take an electricity bill of around $400 a quarter, the increase will be about $1.70 a week,” he said.

“Even though it’s a lot less than last year, and lower than the 7% increase the QCA flagged earlier this year, it’s still going to hurt households on a tight budget,” he said.

“That’s why we asked the QCA to go back and do their sums when they flagged a 7% rise in electricity prices in February.

“I also asked my Department to run the ruler over that figure to make sure it only reflected a genuine increase in the cost of supplying electricity to Queenslanders.

“On top of that, we sent two strong submissions to the QCA to hammer home our concerns. I’m convinced that without our forceful arguments, the increase would have been a lot higher.

“We’re not alone. New South Wales has been hit with a 24% increase over three years, the ACT is facing the prospects of a 10% increase, Tasmania has had a 16.7% increase and Victoria, a rise of 17%,” he said.

Consumer Action Plan

·Increase the State Government’s rebate for pensioners and seniors to match the electricity price rise – the rebate is currently around $145 a year;

·$450,000 over 3 years to fund a consumer advocate service for the Queensland Council of Social Services (QCOSS) to conduct energy consumer research and to take the views of pensioners and people in financial hardship directly to the body that determines the electricity price cap, the QCA. This initiative will be jointly funded by my Department and Kerry Shine’s Office of Fair Trading;

·Immediate secondment of a departmental officer to work with QCOSS and other key consumer groups such as the Queensland Consumers Association and the Pensioners and Superannuants League to help set up the consumer advocacy service;

·A record $650 million for Ergon Energy this year ($300 million more than last year) to subsidise the cost of electricity for households and businesses in regional Queensland – that’s on average, around $1,000 per customer; and

·EnergyWise kits for pensioners, seniors and low income earners with tips to help them save energy and save money

“We’re taking these steps to ease the strain for people in hardship and we will continue to do what we can so that people, no matter where they live, have access to affordable electricity,” Mr Wilson said.

“The bottom line is we’re on the side of consumers and we will continue to look after the interests of everyday Queenslanders, especially people who are doing it tough,” he said.

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