POWER CRUSADE

Fed-up consumers want truth about soaring electricity bills

A POWER bill surge is about to hit household and business bank accounts despite government assurances of only a modest price rise.

Far North mums and dads, as well as commercial operators, have been warned to start saving now to avoid a nasty jolt from July 1.

The Queensland Competition Authority predicts a 1.7 per cent increase in the annual bill for average households on the main residential tariff – up $25 from $1490 to $1515.

The increase for the average small business is estaimated at 1.7 per cent from $2449 to $2486 over the same period.

But Far North Queensland Electricity Users Network co-ordinator Jennifer Brownie says the QCA’s figures are underestimated and businesses and residential electricity users are in for a shock.

FAR Northern small business operators have been warned to prepare for surging power bills despite official predictions for only modest price rises.

The Queensland Competition Authority has released its draft decision on electricity prices for 2017-18.

It predicts a 1.7 per cent increase in the annual bill for average households on the main residential tariff – up $25 from $1490 to $1515.

The increase for average small businesses was an increase of 1.7 per cent from $2449 to $2486 over the same period.

QCA chairman Professor Roy Green said wholesale energy cost increases had been offset “by an expected decline in network costs”.

But Far North Queensland Electricity Users Network coordinator Jennifer Brownie warned taking the QCA’s figures at face value would end in an expensive shock for businesses and residential electricity users alike.

Ms Brownie said the size and power consumption of the “average business” was severely underestimated.

“That sort of bill would be the equivalent to my mechanic, which is a father and son operation operating in a tin shed with one hoist, no airconditioning and no computers,” she said.

“If you do your pricing based on these prices, it could end up detrimental to your profitability.”

Ms Brownie said the average household was also a far more voracious consumer of energy than the QCA’s modelling suggested.

“That’s basically the equivalent to a one-person household,” she said.

Ms Brownie said the QCA had also ignored the surging wholesale electricity prices in Queensland so far this year, which make up a quarter of a power bill. The wholesale price has increased from an average of $59.99 per megawatt-hour in the 2016 calendar year to $96.89 this year.

Bang and Grind cafe owner Tony Barr said he was always sceptical when only price increases were predicted.

His small Cairns CBD business runs three airconditioning units, a coffee machine and significant refrigeration – all considerable costs when it comes to budgeting.

“We’re paying per month more than what a house is paying in a quarter. We’re paying well over $1000 a month in electricity costs,” he said.

Mr Barr believed phasing in renewable energy should happen slowly so added costs could be gradually dealt with.

“We’re seeing the increased cost, and it’s significantly more than CPI,” he said.

The Queensland Electricity Users Network will make a submission to the Finkel review – led by Australia’s chief scientist Dr Alan Finkel – to question the validity of the QCA’s draft electricity prices.

The review, advising the Government on its future energy policies, is due to release its findings mid year.

“It’s the cost of living increasing because of the cost of electricity,” Ms Brownie said.