SCENIC Rim irrigators have slammed the Queensland Competition Authority’s electricity price hikes, saying it is an inefficient cost on production.
Two weeks ago the Queensland Competition Authority (QCA) delivered a determination that meant electricity prices for farmers would increase by 11.2 to 15.8 per cent.
With electricity used to power irrigation pumps, most feed producers and crop growers on the Scenic Rim are high users of electricity.
Tarome vegetable farmer Glenn Abbott said electricity price increases were a heavy cost on his business and the local economy.
“Every increase we can’t find any more efficiencies it’s just a bottom line increase,” he said.
“It’s not like when we increase our fertiliser rates we increase our yield, electricity is a fixed cost for us.”
“That’s just money that doesn’t flow through the economy,” he said.
Mr Abbott said over the past five years quarterly costs for one irrigation site with an electric motor had increased from $2000 to $5500.
“These are pretty big increases, especially when you have 10 of those pump sites,” Mr Abbott said.
The opposition to electricity price increases was also echoed by dairy farmers.
Queensland Dairy Organisation (QDO) president Brian Tessman called for the Queensland Government to overhaul its electricity pricing system.
“Dairy farmers are now considering leaving the grid entirely as it no longer makes economic sense to continue paying these exorbitant electricity prices,’’ Mr Tessman said.
Mr Abbott said his farm had become more reliant on diesel-generated irrigation pumps to try to avoid high electricity costs.
“We don’t worry about putting in a new pump site with electricity.
“We go and buy a diesel engine,” he said.
Mr Abbott said the farm was running with 70 per cent electricity and 30 per cent diesel but that ratio could change to 50-50.
“It’s going to be a big wake-up call for electricity providers when they find out no one is using electricity,” he said.
