ALREADY HIGH QUEENSLAND ELECTRICITY PRICES TO RISE
Electricity prices in Queensland are high and rising, threatening the viability of irrigated agriculture across Queensland.
The current electricity pricing framework is failing electricity consumers and is directly and adversely affecting the international competitiveness of Queensland’s export oriented irrigated agricultural industries, risking turning this pillar of our economy into a stump.
If Ergon Energy’s proposed new tariffs are approved by the energy regulator, then summer power costs will surge.
Ergon’s proposed tariffs, set to take effect from next year, would penalise financially strapped home owners, businesses and farmers during the summer, when they use power the most.
An investigation, commissioned by Canegrowers and carried out by economic consultants Sapere, found the Ergon proposal was far from justified.
The report suggests that the degree of network congestion upon which the proposals in Ergon’s Tariff Structure Statement depend has been overstated by two orders of magnitude based on Ergon’s public data on zone substation congestion.
The scale of this pricing distortion is a whopping $1.8 billion over five years.
This report is our smoking gun to say yep, Ergon Energy has just been a cash cow to print money.
The long-term solution is to fix the
regulatory rules to ensure it delivers fair returns rather than excessive returns to the networks and the State Government that owns them.
Kerry Latter, CEO CANEGROWERS Mackay