Queensland electricity affordability
Published Wednesday, 14 December, 2016 at 10:02 AM
Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply
The Honourable Mark Bailey
An independent report has confirmed Queenslanders can continue to benefit from stabilised electricity prices.
Energy Minister Mark Bailey said the Australian Energy Market Commission’s Electricity Price Trends Report found that Queenslanders will continue to benefit from stabilised electricity prices over the next two years, with network costs forecast to also remain stable.
According to the AEMC report, Queensland was one of only two States to show a reduction in the average annual electricity price trend between 2016-17 and 2018-19. The price trend reduction in Queensland is 1.5% compared to only 0.6% in Tasmania. In other States and Territories, the price trend is to increase ranging from 2.4% to 9.3%.
“We came to government with a firm commitment to Queenslanders to stabilise electricity prices after the 43 per cent surge during the term of the Newman-Nicholls Government, and this report confirms we have set the right electricity policy framework to deliver stabilised prices,” Mr Bailey said.
“Under the first two years of the Palaszczuk Government, prices have increased annually for households by an average of just 1.2 per cent – less than inflation.
“This stabilisation is in part due our decision to direct the State electricity providers Ergon and Energex not to appeal the Australian Energy Regulator’s decision to curb network costs.
“Given network costs make up around half a typical residential bill this will ensure customers see the benefits of more stable prices over the next four years.
“This action was only possible because we kept these important assets in State hands.”
Mr Bailey said the Palaszczuk Government maintained its concession for pensioners and seniors, and has extended the concession – worth up to $330 per year – to low-income households.
"The Government confirmed yesterday it would allocate $170 million over four years to extend the existing electricity rebate to an estimated 157,000 households holding Commonwealth Health Care Cards who will save up to $330 a year from 1 January 2017 with all current recipients of the rebate retaining it," Mr Bailey said.
"All up the generously expanded electricity concession program will provide $840 million to an estimated 688,000 Queensland households over the next four years."
Mr Bailey said another report - AEMO’s annual national transmission network development plan - highlights Queensland’s system security, with strong electricity network independence over the next decade without the need for further interstate connection upgrades.
“Queensland supports a strong national market, but further network investment comes at a cost to consumers and therefore needs to have a strong economic justification, and take into account technological advancements, and new sources of distributed energy such as battery storage,” Mr Bailey said.
“The Palaszczuk Government is committed to keeping consumers front and centre.
“Ensuring affordable electricity was a key focus of the independent Expert Panel report commissioned by the Palaszczuk Government to investigate pathways to achieving 50 per cent renewable energy in Queensland by 2030.
“The expert panel - chaired by investment banker, engineer, and experienced business executive Colin Mugglestone - found the target could be achieved with cost neutral outcomes for Queensland consumers, due to additional supply from the renewable generators placing downward pressure on wholesale electricity prices.
“The Panel also found that Queensland can meet its target while maintaining electricity security and reliability.
“These independent reports confirm that Queensland is on the right path to achieving the important balance of electricity affordability and system security while we transition to a renewable energy future.”
Mr Bailey said Queensland’s RET was established in a policy vacuum under the Turnbull Government, which has no plan to achieve the commitments made under the Paris Agreement and no policies to reduce emissions beyond 2020.
“What we’ve seen over the last week is a disappointing lack of leadership on energy policy and this is set to continue today with no clear pathways or policies identified ahead of the COAG Energy Council meeting in Melbourne,” Mr Bailey said.
“The Turnbull Government continues to stick its head in the sand by ruling out an emissions intensity scheme identified by the AEMC as the most cost efficient way forward and as recognised by Australia’s Chief scientist Dr Alan Finkel.
“The Finkel report released to Energy Ministers has also condemned the lack of certainty, identifying that there is evidence that investment in the energy sector has stalled as a consequence.
“Queensland will continue to act on climate change and reduce emissions in the absence of federal policy but Australians deserve better national leadership on this important issue.”
ENDS
AEMC release:
Media contact:
Zoe Russell - 0428 079 640