Further Electricity Price Rises

Archived News, Posted on 15 Jul 2011

Queensland power prices are set to rise by 6.6 per cent next financial year, an increase that is higher than originally expected.

The Queensland Competition Authority, announcing its final decision on benchmark retail power prices today, said the new prices would apply from July 1.

The authority said it would allow price rises of 6.6 per cent, which was above the 5.83 per cent increase foreshadowed in its draft decision.
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The 6.6 per cent increase would mean an average annual power bill of $1781.50 was set to rise by $117.58. *

However, the authority said the increase would have been even higher if the Bligh government had not decided to limit revenue it would allow Energex and Ergon Energy to collect as a result of a recent decision by the Australian Competition Tribunal.

“Had the government not made this decision, which reduced network costs by $93.2 million, the change in the [benchmark index], and hence notified electricity prices, would have been 8.31 per cent,” the authority said in a statement.

The authority said the increase in power prices was largely driven by the cost of investing in Queensland's power distribution networks.

Energy Minister Stephen Robertson said this afternoon he was "disappointed" with the decision.

"The Bligh government is very conscious of the impact rising electricity prices have on Queensland families and their household budgets," he said.

"I am disappointed by the price increase, but it could have been far worse."

The announcement of the price rises came on the same day the state government unveiled a new energy management plan.

The document foreshadows 28 steps to deal with electricity consumption and peak demand issues, including a measure to make it easier for pool owners to save money.

Daniel Hurst
brisbanetimes.com.au