Gillard keeps electricity prices artificially high

The decision today by Federal Climate Change Minister Greg Combet to artificially increase the Renewable Energy Target (RET) will hit the hip pocket of Queensland families across the state.

Energy Minister Mark McArdle said the Gillard Government has fixed the 20 per cent renewable energy target at 41,000 gigawatt hours which is based on inflated electricity production.

“Demand for power has dropped but because the 41,000 gigawatt hours is fixed, it increases the proportion of expensive renewable energy on electricity bills,” Mr McArdle said

Mr McArdle said that the  Queensland Competition Authority last year advised that the RET added $102 to average electricity bills on top of more than $170 for the Carbon Tax.

“Julia Gillard promised to reduce power bills by $250 and made an issue about increasing power prices, but when given the opportunity to decrease prices, she turned a blind eye on families and battlers because her eyes were on green preferences,” he said.

“Green policies are now adding more than 17 per cent to the average electricity bill, without taking into account the impact of solar photovoltaic on domestic rooftops, which is also being passed onto all consumers on their power bills.”

Mr McArdle said a draft report from the Queensland Competition Authority outlines that by 2015/16 solar PV costs will account for 17 per cent of the average domestic power bill.

“Combine this with the RET and Carbon Tax and we are in a situation where more than one-third of power bills is taken up by green schemes,” he said.

“Yet Climate Change Minister Combet can’t see that these policies might be hurting families.

“This is another example where Mr Combet and Ms Gillard could do the right thing and try to reduce the cost of living on households, but refuse to do so.”

[ENDS] 21 March 2013

Media contact: Minister’s Office 07 3896 3690 or 0417 277 905