Qld: Electricity issues

[ozbob]

Couriermail --> Power prices in Queensland set to soar more than predicted, Government Gazette reveals

Brisbanetimes --> Queensland electricity prices to rise

[#Metro]

Any decent economist knows that price freezes do not work.
They are purely for serving the needs of politicians and not the needs to the community that elects them.

Anna Bligh froze PT prices in 2009 IIRC, next year was a price rise of 20%.
Brumby did it in Victoria also in an election year.

Driving around the suburbs I am noticing a lot of new power poles and fancy / expensive electrical equipment popping up on them. And there seems to be much more of this pole mounted equipment around as well. The solar panels going up also add to the cost as they use the network to distribute their excess power but don't contribute that much to the upkeep. A solar house leaving the grid means less money goes to the network distributor for upkeep etc, and hence prices need to rise to cover that.

Politicians also rejected a time of use tarriff I recall correctly. Again serving their own political needs rather than that of the community. Charge more during peak, less during off peak. Victoria recently had all meters in the state replaced with smart meters which support this pricing and also does away with manual meter reading.

[Stillwater]

State budget set to increase household expenditure by an average of $600 a year.  Now, electricity price rises of $266 a year.  Big hit.

[ozbob]

http://statements.qld.gov.au/Statement/2013/5/31/joint-statement-on-electricity-prices

JOINT STATEMENT
Treasurer and Minister for Trade
The Honourable Tim Nicholls
Minister for Energy and Water Supply
The Honourable Mark McArdle
Friday, May 31, 2013

Joint Statement on Electricity Prices

The independent regulator, the Queensland Competition Authority (QCA), has determined the price rise for general household electricity will be set at 22.6 per cent.

Treasurer Tim Nicholls said the decision was a further blow for consumers but the QCA had limited room to move, with almost 70 per cent of the price increase determined by network costs and green schemes locked in three years ago.

"Network costs controlled by the Australian Energy Regulator account for almost 47 per cent of this increase," Mr Nicholls said.

Energy and Water Supply Minister Mark McArdle said the Federal Labor Government's carbon tax and green schemes, along with the former Labor Government's solar bonus scheme, were the real drivers of the increases.

"The former Labor State Government's solar bonus scheme was no bonus at all. It is a Labor $3 billion solar tax on 80 per cent of Queensland consumers. By 2015-2016 this is going to cost Queensland households an extra $276," Mr McArdle said.

Mr McArdle said the Federal Labor Government could take immediate action to provide relief.

"If the Federal Labor Government scrapped the carbon tax and the rest of the Labor green schemes, Queenslanders would have savings of about 15 per cent on their bills," he said.

Given this year's massive write-downs in government revenue, Mr Nicholls said the government could not afford to pay all consumers an electricity rebate.

"What we will be doing is helping those most in need by spending $136 million in the coming year to help pensioners, seniors and concession card holders with their power costs," he said.

"The Government is also doubling the Home Energy Emergency Assistance budget to $10 million to ensure low income households can get an emergency payment of up to $720 if needed."

Mr McArdle said the Newman Government was committing to a reform program for implementation in 2013-2014 that included the necessary major structural reform to reduce cost drivers of electricity prices.

Mr Nicholls said a range of other cost of living measures had been introduced by the Government to try to limit the impact of price increases.

He said the measures included:

    $132.3 million over three years to freeze car registration fees for more than 2.5 million family vehicles
    $917 million over three years to reinstate the principal place of residence concessional rate for stamp duty, providing savings of up to $7,175 when buying a home
    $158.2 million over four years to halve public transport fare increases due in 2013 and 2014
    $39 million over four years to reward regular commuters by reintroducing free travel on the Translink network after nine journeys in a Monday to Sunday week

Mr Nicholls said the decision by the QCA made it all the more important that consumers checked they were getting the best deal from electricity retailers.

[ENDS] 31 May 2013

[#Metro]

$158.2 million over four years to halve public transport fare increases due in 2013 and 2014

The price has still increased, and the subsidy has increased also. $40 million pa is enough to add 6 BUZ services to the system and have them run for 4 years at least.

Another ineffective vote buying exercise aimed at serving politician's needs and not the community's needs. Proper path to have taken is to accept the TransLink bus review with tweaks.

[ozbob]

Brisbanetimes --> Power price rise: where the money will go

[ozbob]

Brisbanetimes --> Premier rules out statewide electricity rebates

[ozbob]

http://statements.qld.gov.au/Statement/2013/6/16/major-reforms-of-queenslands-electricity-sector-unveiled

Minister for Energy and Water Supply
The Honourable Mark McArdle

Major reforms of Queensland's electricity sector unveiled

Major changes to Queensland's electricity sector that could save billions in network costs and revenues are the centrepiece of reforms announced today by the Queensland Government.

Queensland Energy Minister Mark McArdle said the proposal, subject to consultation with employees, was to bring Ergon and Energex under a single company would reduce duplication and improve the efficiency of network businesses.  This proposal if accepted could lead to savings of over $580 million over seven years.

"Doing this will help the government tackle soaring electricity costs by delivering significant savings that can be passed on to customers," Mr McArdle said.

"Electricity sector reform is not something that can be delivered at the flick of a switch. The establishment of a holding company for Ergon and Energex, plus other efficiency measures identified, should start to make a difference.

"The issues identified in reviews of the sector have taken a long time to bring together.

"There is no overnight solution to getting benefits back to customers as soon as possible, but tackling network costs is seen as the most critical issue within the government's control."

In response to rising electricity costs, Mr McArdle said the Newman Government established an Interdepartmental Committee on Electricity Sector Reform (IDC) on 30 May 2012 to examine cost pressures on electricity prices.

The IDC was asked to make recommendations to ensure:

• Electricity in Queensland is delivered in a cost-effective manner for consumers
• Queensland has a viable, sustainable and competitive electricity industry
• Electricity is delivered in a financially sustainable manner from the Queensland Government's perspective

"The IDC recommendations being released today provide a blueprint for reform that addresses the unsustainable nature of network costs, maximises the potential benefits of a competitive market, and protects vulnerable consumers as the reforms are delivered," Mr McArdle said.

"In developing the recommendations, the IDC looked at best practice from other states and developed strategies that allow the government to maximise the benefits of reform.

"However, customers are at the centre of the government's response, with reforms aimed at tackling costs, improving competition and providing the building blocks for a more sustainable electricity sector for customers, industry and government."
Mr McArdle said the IDC found two main cost drivers:

1. Network costs and revenue. These grew by more than 100 per cent between 2007–08 and 2012–13
2. Climate change policies. The costs of these policies are expected to add around 11 per cent to standard residential bills in 2013–14, or around 15 per cent if solar costs are included

"These reform strategies address cost pressures, build a more competitive market and reduce risks to customers, industry and government in participating in the sector."

[ENDS] 16 June 2013

[#Metro]

Everyone is going to go solar and attempt to disconnect themselves from the network.

[frereOP]

You can promise the world when you have the luxury of being in opposition.  You have to face the reality when you mange to gain control of the Treasury benches.

Much of the cost is in infrastructure replacement and development.  Fall behind on infrastructure and you end up passing the cost we should be paying onto our kids.  That's why we are facing such huge costs for public transport upgrades.  Just watch what happens with water in the next 12-18 months as well!

It's about time politicians came clean and put reality before their own petty ambitions.  Sorry, but it ain't gonna happen because they are all a mob of self-centred, power seeking, economically illiterate d$%^&#@*s (yes, there are a couple of possibilities to match the wildcards - you chooses one or all!) who thrive by having their snouts in the trough overthe public good!

[Gazza]

Fall behind on infrastructure and you end up passing the cost we should be paying onto our kids

Quick question, but why is there always a fear of making our kids pay for stuff? Shouldn't they pay for what they are benefiting from, until such time as the asset is life expired?

[frereOP]

Fall behind on infrastructure and you end up passing the cost we should be paying onto our kids

Quick question, but why is there always a fear of making our kids pay for stuff? Shouldn't they pay for what they are benefiting from, until such time as the asset is life expired?

They will have their own challenges (new schools, new pulic transport systems and maintenance, new hospitals etc as well) as population increases and demand for new services increases with it.  Politicians LOVE giving us tax breaks because we are so obscessed with having our annual overseas holiday, our two brand new cars in the garage and having the latest iPhone that we can't afford to pay for the things that really matter like schools, hospitals, public transport.  Life has to be a balance but at the moment abject consumerism means we really do have the balance wrong in the bigger scheme of things.

[somebody]

Fall behind on infrastructure and you end up passing the cost we should be paying onto our kids

Quick question, but why is there always a fear of making our kids pay for stuff? Shouldn't they pay for what they are benefiting from, until such time as the asset is life expired?

One's kids are likely to be paying big time, for health costs for one, for people who are no longer paying taxes.

[ozbob]

http://statements.qld.gov.au/Statement/2013/6/17/end-of-electricity-price-regulation-to-improve-competition

Minister for Energy and Water Supply
The Honourable Mark McArdle
Monday, June 17, 2013

End of electricity price regulation to improve competition

Removal of electricity price regulation in south-east Queensland by 1 July 2015 and the introduction of price monitoring are further reforms to the electricity sector designed to improve competition and reduce pressures on prices.

Queensland Energy Minister Mark McArdle said the reforms, subject to satisfactory consumer protection and engagement, should increase competition with better outcomes for customers in terms of choice, efficiency and customer service.

Mr McArdle said the final details for introduction of price monitoring will be part of the Government's 30 year strategy. Once the pre-conditions are met the Government's role will shift to monitoring prices set by retailers.

"The current role of the Queensland Competition Authority (QCA) in setting prices will be retained for the Ergon area while the Government finalises a strategy for introducing competition into regional Queensland," Mr McArdle said.

"Customers in the Ergon area benefit from more than $600million in price support through the Uniform Tariff Policy and further work is required before full retail competition can be introduced to regional Queensland."

The QCA would be asked to oversight price monitoring and examine price packages put together by retailers.

"This system is currently used in Victoria and South Australia and allows consumers to compare prices and shop around," Mr McArdle said.

"This model encourages electricity retailers to offer the best price because they are aware that customers can compare prices and change if they can find a better offer.  Price regulation has not kept prices down.  Removing it will drive more competition and more offers for customers."

Mr McArdle said price monitoring combined with other electricity sector reforms being undertaken by the Government should start to make a difference on electricity prices.

"While there is no overnight solution to deliver benefits to customers, improving competition by removing regulation that does not work is an important issue within the government's control."

[ENDS] 17 June 2013

[ozbob]

Electricity sector reform  --> http://www.dews.qld.gov.au/policies/electricity-sector-reform

[ozbob]

Brisbanetimes --> Lower power prices not guaranteed by reforms

[#Metro]

Lower prices are not guaranteed from no reforms either.

[Golliwog]

What kind of idiot would promise something so broad anyway? It's nearly as bad as Tony saying scrapping the Carbon price will lower electricity prices. Technically yes, but it's going to be lost in the noise of other increases.

[#Metro]

We don't live in a command economy where prices, wages and quotas happen. Silly proposition by the newspaper.

[Golliwog]

We don't live in a command economy where prices, wages and quotas happen. Silly proposition by the newspaper.

Unfortunately, that's what people want. If you can't promise things, you clearly don't know what you're doing.

[#Metro]

Well why not just pass a law that says electricity is $1 per year. GUARANTEED.
You'd soon see what would happen, power consumption through the roof, network disrepair and then a blackout.

[ozbob]

Brisbanetimes --> Power reforms could affect network reliability: report

[ozbob]

http://statements.qld.gov.au/Statement/2013/6/18/electricity-reforms-to-focus-on-customers

Minister for Energy and Water Supply
The Honourable Mark McArdle
Tuesday, June 18, 2013

Electricity reforms to focus on customers

Helping Queenslanders meet their electricity bills and develop more effective concessions arrangements are key report recommendations released by the Newman Government.

Energy Minister Mark McArdle said the recommendations outlined in the Inter-departmental Committee (IDC) report on Electricity Sector Reform would drive a more competitive market for electricity in Queensland.

"The Newman Government is working to improve Queenslanders' understanding of the electricity sector and outline how they could benefit from discounts and improved products in a more competitive energy market," Mr McArdle said.

"The Government has also conditionally accepted the IDC's recommendation to sign up to the National Energy Customer Framework next year on the provision that customers outside of south-east Queensland will be strongly supported.

"This will further improve protections for customers experiencing financial hardship, as well as Queenslanders living in retirement villages and caravan parks, while also reducing administrative costs."

Mr McArdle said the reforms come on top of the Newman Government's announcement in the budget that it will spend more than $138 million in the coming year to help pensioners, seniors and eligible concession card holders with their energy bills.

"The Newman Government has committed $153 million in 2013-14 - a $35.9 million increase - to support Queensland pensioners, families who suffer significant financial hardship and people with a disability or illness," Mr McArdle said.

"As outlined in this month's budget, $136.8 million will be available as part of the electricity rebate scheme for Queenslanders with a pensioner concession card, a seniors card or a DVA gold health card – a boost of more than $28 million.

"We are doubling the Home Energy Emergency Assistance Scheme budget to $10 million to ensure low income households can get an emergency payment of up to $720 if needed.

"Additional funding has been allocated to assistance schemes that support pensioners and seniors with reticulated natural gas, Queenslanders who use an oxygen concentrator or kidney dialysis machine, and people with a medical condition who rely on air-conditioning to regulate their body temperature."

Further information about the electricity rebates and concessions available can be found at www.communities.qld.gov.au or by phoning 13 7468.

[ENDS] 18 June 2013

[ozbob]

Brisbanetimes --> Changed habits cut Queensland's energy use

[ozbob]

Minister for Energy and Water Supply
The Honourable Mark McArdle

Domestic Tariffs to be reviewed

A Tariff Reform Working Group established by Energy Minister Mark McArdle will examine all tariffs including the major domestic tariffs 11, 31 and 33 to improve the affordability of electricity for Queensland consumers.

Mr McArdle said another focus of the newly established group was to determine whether the electricity usage patterns of Queenslanders suited the current tariff structure.

Comprising expertise from Energex, Ergon, the Queensland Competition Authority, Queensland Treasury and the Department of Energy and Water Supply, the working group will provide strategic advice and direction on future electricity tariff structures as part of the Newman Government's commitment to electricity sector reforms.

Mr McArdle said Queenslanders are using electricity today in a way that was never envisaged when these network tariffs were first designed.

"Over the last thirty years, the peak demand period has increased by more than 200 per cent, and whereas people used to use a lot of electricity to heat their homes, they're now using more to run air conditioning," Mr McArdle said.

"We have also seen a 150 per cent increase in electrical appliance consumption.

"It makes sense now to take a fresh look at the way tariffs are structured so they better reflect consumers' needs."

The views of Queensland's electricity retailers will also be an important input into the process and the working group will welcome input from Ergon Energy which is currently talking to Queensland consumers about its tariff review.

The working group was established immediately after the announcement of the reforms and is expected to have its first formal meeting later this month.

Mr McArdle said he anticipated the implementation of these tariff reforms to commence 1 July 2015 depending upon the work involved in the process and any complications that may arise.

[ENDS] 16 July 2013

[ozbob]

http://statements.qld.gov.au/Statement/2013/9/11/queenslands-electricity-future-in-your-hands

Minister for Energy and Water Supply
The Honourable Mark McArdle

Queensland's electricity future in your hands

Queenslanders are being asked to share their vision for the State's electricity future as the Newman Government released the 30 Year Electricity Strategy discussion paper today.

Minister for Energy and Water Supply Mark McArdle said Queensland's electricity supply system is entering a period of unprecedented change to the way electricity is made, moved, sold and consumed across our state

"We need Queenslanders to share their vision for the future which will shape the final 30 Year Electricity Strategy, to be released next year," Mr McArdle said.

"When thinking about the future we need to think beyond the horizon and question the possibilities of innovation. Will we need to plug in our appliances, or will electricity be sent wirelessly? Will our roofs be painted with organic solar cells that power batteries in our homes?"

Mr McArdle said as well as setting a plan for our long-term future, the discussion paper also seeks comment on a number of issues that aim to address immediate challenges for Queensland.

"In the short-term, we must address the build-up of costs which are driving the unsustainable electricity price rises we have seen over the past few years," Mr McArdle said.

"To have the best electricity sector for Queenslanders, we must develop a policy framework that will meet the future needs of the community."

Mr McArdle said in preparing the strategy, the Government cannot and will not attempt this significant reform without input from Queensland businesses, farmers and households.

"Having a strong electricity supply system relies on government, industry and consumers working together to establish a common understanding of the challenges facing the sector and developing a way forward on key issues."

The discussion paper is available at www.dews.qld.gov.au, with submissions closing on Friday 6 December 2013.

News and discussion on Queensland's electricity sector can be found on the 'Energy Queensland' Facebook page, or by following @EnergyQld on Twitter.

[ENDS] 11 September 2013

--> 30 Year Electricity Strategy Discussion Paper

[ozbob]

Couriermail --> Surge in Queensland small businesses with electricity disconnected, contested accounts as power prices soar

[ozbob]

Brisbanetimes --> Report recommends sale of Queensland's electricity network

[ozbob]

Minister for Energy and Water Supply
The Honourable Mark McArdle

Minister to stamp out sneaky power pricing tactics

The Newman Government has taken urgent action in response to reports that electricity retailers are failing to notify customers about the expiry of discounts on their contracts.

Minister for Energy Mark McArdle said he had requested the Queensland Competition Authority (QCA) amend the Electricity Industry Code to require retailers to inform customers receiving a fixed term benefit when it is nearing expiration.

Under the Electricity Act 1994, only the QCA can make amendments to the Code.

"This will require retailers to advise electricity customers when their negotiated contract and any fixed benefit are due to expire," Mr McArdle said.

"Recent reports of electricity consumers being unaware that they've stopped receiving discounts from their retailer are concerning and we have taken immediate action to put a stop to this.

"The issue was first brought to my attention late last week by the Energy and Water Ombudsman. He became aware that electricity retailers have been offering plans with benefits such as a discount for a fixed period to customers who are on open ended negotiated contracts.

"The Electricity Industry Code currently requires retailers to alert customers 20 to 40 days ahead of the pending expiry of a negotiated contract, but not of a looming end of a fixed benefit under that very contract.

"As a result, customers may not discover their discount has expired until they receive their next bill, which may be some months after expiry of the plan. 

"This has the potential to cost everyday Queenslanders hundreds of dollars per year. Queenslanders are fed up with retailers using these kinds of tactics and they deserve better treatment.

"I have asked the QCA to ensure retailers obtain the explicit informed consent of customers when any changes are made to their contracts, including extending or adding new fixed benefits or plans, be they for discounts or price variations.

"While I am disappointed this issue has occurred at all, the early identification by the Energy and Water Ombudsman Queensland is positive and shows the system that we have in place does work to protect Queensland consumers."

Further information about protections for Queensland electricity consumers is available at www.dews.qld.gov.au or by phoning 13 QGOV (7468).

[ENDS] 19 October 2013

[ozbob]

Brisbanetimes --> Electricity bills set to rise about $200 a year

[Mozz]

Daily Service Charge
was 50.22cents now 83.41 increase 66.1%

I like how they are thinking ;-) ;-) ;-) .... keep spectacularly raising the cost of being connected to the grid so as to provide the impetus for research to enable everyone to get off the grid .... bring it on !!!!

It aligns with the fare strategy, make it so expensive that people choose to use other alternatives to the mega expensive public transport costs (saves having to provide more rolling stock) ... it's only a short hop, skip and jump and we could be the worlds most expensive public transport..... bring it on!!!!

#wearespecialinqld

[verbatim9]

 Qld really needs to consider Daylight Saving reducing peak evening loads with residential and commercial solar panel use, hence a few extra dollars in peoples pockets as a result. Solar panels on trains, busways stops, train stations etc......Wind power around port of Brisbane. Those afternoon sea breazes can be strong.

[ozbob]

Minister for Energy and Water Supply
The Honourable Mark McArdle

PowerQ: a strong plan to power Queensland

Queensland families will have future electricity prices stabilised and cost of living pressures eased as a result of the Newman Government's strong 30 year plan for the electricity sector.

Launching PowerQ: a 30-year strategy for Queensland's electricity sector today Energy Minister Mark McArdle said it would deliver a more cost-effective, consumer focussed, resilient and better planned electricity supply system. 

"The cost of electricity is a burden on families, made tougher by Labor's inept management over two decades," Mr McArdle said. 

"Power prices have more than doubled over the last decade because of Labor's significant supply failure, its reckless "blank cheque" spending response and economically-irresponsible political interventions in the market, like the carbon tax. 

"The Queensland Government has a strong 30 year plan that will create a brighter future for families across the state. 

"We know that a strong electricity sector underpins our promise to create jobs and grow an economy around the four pillars of agriculture, construction, resources and tourism. 

"Without comprehensive reform, electricity prices will continue to surge – doing nothing is not an option. 

"PowerQ is the result of extensive consultation with everyday Queenslanders, electricity retailers, generators and industry representatives, who will all have further roles to play as the strategy's actions are delivered. 

"Our electricity sector is changing dramatically and we will continue to see a transformation over the coming decade that will alter the way we make, move, buy, sell, and use energy in the future. 

"PowerQ will give Queensland households, small businesses and industry greater choice, flexibility and control over how they use and pay for electricity." 

PowerQ includes strategies to: 

    provide policy certainty to encourage strong competition and benefit consumers;
    use customer data and feedback to create a more responsive market;
    encourage a competitive and diverse market that attracts more innovation and investment; and
    increase Queensland's prosperity by ensuring our electricity market is more affordable and efficient.

Mr McArdle said while the Government was already well underway in some parts of its strong plan to stabilise electricity prices, there was no quick fix. 

"We have removed prescriptive reliability standards for electricity distributors, which will save Queenslanders more than $2 billion between 2015 and 2030, while more immediate reforms to the Solar Bonus Scheme will save about $110 million over the next six years," he said. 

Legislation was also introduced into Queensland Parliament last month that would drive greater competition and attract more retailers to the Energex region, while increasing consumer protections for all Queenslanders. 

PowerQ is available at www.dews.qld.gov.au 

Details on the implementation of the Queensland Government's strong plan for a brighter energy future can be found by liking the 'Energy Queensland' Facebook page or following @EnergyQld on Twitter. 

[ENDS] 20 June 2

[SurfRail]

2 of the 4 pillars are the same thing - that's how intellectually and economically lazy this state is at the moment.

[ozbob]

Sydney Morning Herald --> The 'death spiral' scaring electricity providers

[ozbob]

Melbourne Age --> Carbon tax merely a blip in power price scandal

[ozbob]

http://statements.qld.gov.au/Statement/2014/7/17/carbon-tax-scrapping-to-lower-electricity-bills-for-queenslanders

Media Statements
JOINT STATEMENT
Treasurer and Minister for Trade
The Honourable Tim Nicholls

Minister for Energy and Water Supply
The Honourable Mark McArdle

Thursday, July 17, 2014

Carbon tax scrapping to lower electricity bills for Queenslanders

The average Queensland family will save about $170 a year off their household electricity bill as a result of the vote to finally repeal Labor's toxic carbon tax.

Treasurer Tim Nicholls and Energy Minister Mark McArdle applauded the senate's vote to axe the tax and said it brought some welcome cost of living relief for Queensland families.

Mr Nicholls said Prime Minister Tony Abbott is to be congratulated for delivering the outcome that Australians overwhelming voted for.

"Labor's carbon tax has not only been an unnecessary slug on the Queensland economy, it's also failed its primary purpose - to have any real impact on lowering carbon emissions," he said.

"What's really disappointing is that Labor's Queensland senators yet again voted against the repeal of their carbon tax, showing once and for all that they will only stand up for their Greens mates, not Queensland families."

Mr McArdle said the scrapping of the carbon tax will deliver real savings for Queenslander's on their electricity bills.

"The independent Queensland Competition Authority (QCA) has found that the rise in the domestic tariff 11 for 2014-15 will now be just 5.1 per cent instead of 13.6%," he said.

"The average household on Tariff 11 and a load control tariff (hot water and/or pool pump tariff) could expect to save around $170 this financial year.

"There are also significant tariff reductions across the board for Queensland businesses and farmers.

"The industry must respond to the repeal of the carbon tax by passing on the savings to Queensland families."

The attached table details the impact of removing the carbon tax on all Queensland electricity tariffs.

Mr McArdle said while one of Labor's big hits on Queensland electricity bills had finally been eliminated, unfortunately we are all still paying the price for Labor's planning failures, network gold-plating and economically-irresponsible political interventions in the market.

"The recently launched PowerQ: a 30 year strategy for Queensland's electricity sector is the Newman Government's strong plan to stabilise future electricity prices."

[ENDS] 17 July 2014

[ozbob]

Couriermail --> Consumers pick up tab for more than $1.8 billion Energex has 'saved' under rules that energy companies can retain unused revenue

[ozbob]

Brisbanetimes --> Energy companies gouging households 'because they can'

[ozbob]

JOINT STATEMENT
Premier and Minister for the Arts
The Honourable Annastacia Palaszczuk

Minister for Main Roads, Road Safety and Ports and Minister for Energy and Water Supply
The Honourable Mark Bailey

Thursday, October 29, 2015

Power Price Stability Locked in for Queenslanders

The Palaszczuk Government has acted to lock in power price stabilisation for Queenslanders following the final determination from the Australian Energy Regulator today.

Premier Annastacia Palaszczuk said the State Government – as the owner of these businesses on behalf of the people of Queensland – will direct Energex and Ergon to lock in these better outcomes, and not appeal the AER decision.

"In recent years there have been very few meetings or conversations I had with Queenslanders where their skyrocketing electricity bills weren't mentioned," Premier Palaszczuk said.

"When you have price increases of 43% like we had under the former LNP Government, that's to be expected.

"But what made it worse was the threat that our energy providers would be sold off to the private sector, taking control of those businesses away from the Government and placing it into the hands of those whose number one goal was to protect profits, not consumers.

"Today, my Government will demonstrate to Queenslanders why they got it right when they elected the Palaszczuk Labor Government at the last election, and saved their energy assets from sale."

Energy Minister Mark Bailey said the determination should result in stable Queensland electricity prices over the next few years.

"The Newman years of painful electricity price surges are over – enough is enough," he said.

"We have already seen 2015-16 electricity prices decline on average by half a per cent on average for a typical Queensland customer.

"To ensure Queensland electricity customers are able to obtain the benefit of stable electricity prices over the next five years the Government has taken the decision to direct the network businesses not to appeal specific elements relating to the Weighted Average Cost of Capital (WACC) and Gamma, of the AER's final revenue determinations.

"This morning I have spoken the Chairs of both Boards to inform them of the Government's decision. They both understood and accepted the Government's decision."

Minister Bailey said the Government considers that the AER's decision in relation to WACC is balanced, in that it provides the network businesses a reasonable rate of return on their assets as well as providing stable electricity prices over the next five years for customers.

"While the Government acknowledges that the network businesses will need to make adjustments to reflect the lower WACC, it is confident that the network businesses will work with customers to deliver innovative solutions and continue to deliver efficient energy services," he said.

"The AER's decisions to reduce Energex and Ergon Energy's revenues will require them to continue to make further efficiency improvements.

"The Queensland Government remains resolutely committed to no forced redundancies, and we will consult and work with the representatives of our workforce – the unions. Therefore any changes in staff numbers will be achieved through voluntary redundancies and natural attrition.

"This decision to lock in better electricity price outcomes for Queenslanders shows the Palaszczuk Government understands the pain many Queenslanders experience at bill time and we're locking in the gains by the umpire over coming years."