Palaszczuk’s power play

Premier’s $300m energy savings splurge

Record dividends being reaped from Queensland’s highpriced power will be reinvested by the Palaszczuk Government to reduce power bills. In a major pre-election ploy to nullify the crucial issues of energy costs, Premier Annastasia Palaszczuk announced $2 billion from the Government’s power spoils will be used to offer sweeteners.

PREMIER Annastacia Palaszczuk has announced a $300 million pre-election spending spree to bring down power bills in a clear play for votes ahead of the looming poll.

In a bid to front-foot a costof-living election battle, Ms Palaszczuk yesterday moved to divert more than $2 billion in dividends from its power assets over two years away from shoring up the budget bottom line and into voters’ pockets.

“Over this term we have used that money to down debt and restore frontline services,” she said of the dividends.

“Now we are moving to the next phase.”

The policy will likely force sweeping cuts across the Government’s spending in other areas.

About $300 million in dividends will be for measures including handing $50 a year Queensland to households over the next two years, starting from next year, and giving 100,000 households up to $300 in rebates for purchasing energy-efficient airconditioners and other appliances.

Ms Palaszczuk promised to cap household power bills at inflation for two years as well.

“There are also measures for regional Queensland,” she said.

“Ergon customers in regional Queensland will get discounts of $75 for households and $120 for small businesses if they take up monthly or direct debit billing.”

Ms Palaszczuk yesterday insisted the state had other levers to pull to pay down debt and cover frontline services while also giving back dividends to the public, but she did not say what they were.

It comes just days after ratings agency S & P warned the Government’s expenses were increasing and debt levels would rise “in the absence of more strategies that reduce debt levels or raise revenues”.

The Opposition slammed the spending spree as a “money merry-go-round”.

“Labor is going to give struggling Queensland households a bit of cash and hope they don’t notice that they have been ripping them off,” LNP leader Mr Nicholls said.

Ms Palaszczuk will meet electricity retailers this week to discuss her plan and to warn them she could re-establish a state-owned retailer to compete in the market should they not pass on the savings.