Reforms to energy sector offer hundreds in savings
QUEENSLANDERS could save $ 419 a year on their power bills under a radical plan to reform the energy sector that includes splitting and selling off stateowned generators.
The consumer watchdog estimated households in southeast Queensland could pocket the largest savings of any part of Australia by 2020.
But both the Queensland Government and Opposition ruled out politically sensitive privatisation and Prime Minister Malcolm Turnbull said better competition could be achieved even if the state maintained ownership.
The proposal was one of 56 in a wideranging ACCC blueprint designed to remove confusion and price gouging in a “broken energy market”.
A refusal to do this would “hurt consumers” as just two big generators dominate the market and have an “irresistible temptation” to push up prices, ACCC boss Rod Sims warned.
In a series of proposed changes, energy companies would be prevented from owning more than 20 per cent of the market and the Federal Government would underwrite new baseload power generation.
Declaring voters “expect us to get lower electricity prices”, Mr Turnbull said he would consider all the recommendations but would not commit to a time frame for delivering reforms, many of which need to be agreed with the states.
The Prime Minister said there was “considerable merit” in a default price to make it easier for customers to compare offers.
Nationals MPs who have been pushing for a new coal- fired power station welcomed the proposal for the Government to underwrite large- scale contracts.
“The ACCC has recommended the government underwrite baseload power investments. Once again common sense of @ The_ Nationals is vindicated!” Resources Minister Matt Canavan tweeted.
Mr Turnbull left open adopting this proposal, which could end a damaging split over energy policy within his government, but insisted any investment would not favour coal over any other source.
“It’s technology- agnostic. So it certainly wouldn’t exclude any fuel source. We’ve got to stop focusing on one technology or another,” Mr Turnbull said.
Mr Sims said the reforms would save average Queensland households $ 419 a year but this could be as high as $ 750 a year if they were on an inflated power deal with their retailer and switched to a better one.
But he warned consumers would suffer if the Queensland Government refused to split state- owned generators into three units and privatise at least two of them.