Bligh Govt goes in to bat for the consumer

Mines and Energy Minister Geoff Wilson said today that the Bligh Government would take up the fight for electricity consumers after they were dealt a blow today by the independent economic regulator, the Queensland Competition Authority (QCA).

Minister Wilson said today’s draft decision by the QCA to increase the maximum price for electricity by 13.6% from 1 July next year would hurt Queensland households on a tight budget.

“On a $400 quarterly bill, that’s an increase of $4.20 a week or $55 a quarter,” Mr Wilson said.

“I’m shocked. It’s the news no one wanted to hear, least of all households that are doing it tough. It’s a big whack for them,” Mr Wilson said.

“I’ve directed my Department to closely scrutinise the draft decision to make sure any price rise only reflects the true cost of supplying electricity to Queensland consumers.

“If it doesn’t stack up, we’ll take up the fight for consumers again. We’ll lodge another strong submission with the QCA,” he said.

Minister Wilson said a big factor in the QCA’s decision was the massive amount spent on electricity infrastructure in Queensland – around $9 billion over 5 years – to strengthen the network.

“You’ve only got to look at what happened after those violent storms hit the south east the week before last. 230,000 homes and businesses lost power and within 72 hours it was back on. It showed the real strength of the state’s electricity network,” he said.

“We’re not alone. Other states have also been hit with price rises higher than ours. Queensland’s electricity prices are still among the lowest in the country.

“Even so, we know it’s going to hurt struggling households and we won’t turn our back on them,” he said.

Minister Wilson said the Bligh Government would continue to reach out and help the battlers.

“We stepped in to help them before and we’ll do it again,” he said.

“We increased our electricity rebate for pensioners and seniors from $145 to $165 to ease the financial burden.

“We established a $3 million hardship scheme for people who had difficulty meeting the cost of their electricity and gas bills.

“We gave households and small businesses in regional Queensland more than $600 million in subsidies last year to help keep electricity bills down – that’s around $1,000 per household.

“There are big challenges ahead for Queensland and the world in the current global economic crisis. We’re all aware of the need to save energy and reduce greenhouse gas emissions,” he said.

“One thing is undeniably clear: the long term future for Queensland and the world does not include business as usual. We cannot keep doing what we were doing. We owe it to future generations.

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

The Minister said it was important for industry stakeholders, especially consumer groups to lodge submissions with the QCA during the public consultation period.

Media Inquiries: Ellen McIntyre 3225 1819