Merger on cards for power giants
QUEENSLAND’S governmentowned electricity retailers could be merged to bring down power prices, under a plan the union warns could lead to more blackouts.
Energy Minister Mark McArdle says electricity tariffs would be scrapped to entice greater competition and retailers Ergon and Energex merged into a single parent company. They would no longer have to follow prescriptive reliability standards.
It’s hoped the proposed merging would save $580 million over seven years.
‘‘There is no overnight solution to getting benefits back to customers, but tackling network costs is seen as the most critical issue within the government’s control,’’ Mr McArdle said.
He promised consultation. But the Electrical Trades Union said it hadn’t been consulted on the plan, which secretary Peter Simpson said could lead to less reliability and more blackouts.
‘‘It could mean higher electricity prices in the bush and job losses,’’ he said. ‘‘We’ll be seeking further discussions with the government. If we don’t get the level of consultation needed, we will be taking them to court.’’
Opposition energy spokesman Curtis Pitt says the government must guarantee lower power bills, no job cuts, no sale of Energex or Ergon and also guarantee reliability of supply.
He says the Newman government promised that power bills would be lower under the LNP.
AAP