State has power to cut prices

WHEN businesses are struggling to keep their heads above water, buckling under the pressure of rising costs and trying to weather what has been a difficult few years, the profit margins of Ergon Energy are infuriating.

Households struggle to make ends meet on a daily basis, making sacrifices and trying hard to get ahead.

Yet Ergon Energy Queensland made a $ 375 million profit in the last financial year – more than double its previous profit.

It’s enough to make your blood boil, especially given the fact Ergon is North Queensland’s only energy provider and that ultimately those profits are being poured into State Government coffers.

Yes, out of the $ 1.161 billion of returns that Energy Queensland – a merger of the state’s providers – brings in, $ 852 million was spent on electricity customer rebates, concessions and cost- reducing initiatives.

But the remaining $ 309 million went to the Queensland Treasury to be spent elsewhere.

The State Government claims it spends about $ 1.1 billion to alleviate bill stress.

But if that’s the case, it seems like the Government is unnecessarily shuffling around money in a self- made bureaucracy when just charging less for power would be a preferable solution.

There isn’t a customer out there who wouldn’t rather have a smaller bill from the outset than see these obscene profits being returned.

It does give weight to the LNP’s comments about the cost of electricity being akin to a “secret tax” for the Labor Government.

In North Queensland, the cost of power is one of the top concerns for both businesses and residents. The lack of competition in the region also leaves consumers at a disadvantage compared to those in the southeast corner.

Ultimately, if these profits are returned to the State Government, which also controls the regulatory framework within which the energy retailers operate, then the Queensland Government also has the power to lower excessive prices.