Cheaper power on way for regions

REGIONAL Queenslanders are set to save an average of $58 a year on their household power bills from July 1.

The forecast savings come after the Palaszczuk government forced extra competition into Queensland’s electricity generation market.

The Queensland Competition Authority has recommended power price cuts in the state’s regions which would result in savings of $58 for average households and $180 for small businesses.

The expected fall in power bills of 4.1 per cent and 7.2 per cent for households and businesses respectively in regional Queensland’s governmentregulated market, are based on predictions that prices offered by retailers in the competitive southeast corner will fall in 2019-20.

QCA’s draft report said extra competition created from new solar and wind farms would lower wholesale prices and flow to consumers.

“This decrease reflects the projected decrease in spot price volatility in Queensland and other national energy market (NEM) regions resulting from the expected entry of approximately 5200 megawatts of utility-scale solar and wind generation into the NEM,” the report said.

The QCA also said the government’s decision to spin off Wivenhoe and other hydro assets as well as Swanbank E gas station into a third stateowned generator would also reduce prices.

However, the report warned savings could be offset by coal-fired power stations trying to reap profits during night-time peaks when there is less competition from rooftop solar and renewable plants.