Around 200 farmers will have the chance to help Ergon better understand business electricity needs and demands in regional Queensland as part of the Palaszczuk government’s $10 million package to help stabilise regional power bills.
Energy Minister, Mark Bailey said they will have the chance to trial off-peak and demand-based electricity tariffs under the Regional Business Support Package being delivered in conjunction with Energy Queensland and primary producer organisations.
“These trials respond to requests from the agricultural sector for consideration of other tariff options to better suit the needs of primary producers,” he said.
There will be three separate trials, aiming for a diverse and representative selection, to assist Ergon to better understand the potential for offering controlled load and seasonal demand tariffs as an alternative to the current transitional agricultural tariffs due to expire in 2020.
The Queensland Farmers’ Federation (QFF), which has been involved in planning the trial along with Canegrowers and Cotton Australia, welcomed the support package.
President Stuart Armitage said the cost of electricity continued to be the number one concern for the intensive agriculture sector, with many farms seeing unsustainable price increases.
“The sector hopes this tariff trial will provide the information needed to determine what the real impacts of load-controlled and seasonal demand tariffs are, as current agricultural tariffs are phased out,” he said.
“QFF will be working with industry, Ergon Energy and the government to assist in finding a solution to electricity prices affecting farmers throughout the state.”
Treasurer Curtis Pitt said through the MYFER the government has provided $180 million in funding for the government’s response to the Queensland Productivity Commission’s inquiry into power pricing.
“In addition to the $10 million package to support regional business operators, we’ve allocated $170 million over four years to extend the existing electricity rebate to an estimated 157,000 households holding Commonwealth Health Care Cards,” Mr Pitt said.
“They will save up to $330 a year from 1 January 2017 and all current recipients of the rebate will retain it.
“In total we are assisting Queenslanders with a significant investment of $842 million package over four years.”
Mr Bailey said the first two trials would run until June next year and the third trial until June 2019.
Further information is available from agriculture industry bodies, Ergon or online at ergon.com.au/agtarifftrial.
Application forms are available from the same website and must be submitted by March 24.
Trial 1
- Participants will be placed on Tariff 33, an economy tariff used by many households for hot water systems, pool pumps and other equipment that does not need continuous power.
- Involves the use of a controlled load tariff to supply key farm loads, including irrigation pumps and ancillary farm equipment to understand the implications for farms in switching from tariffs with power available 24/7 to a control load tariff with limited hours of supply.
- Participants will receive a free digital electricity meter, access to off-peak tariff rates for the duration of the trial and detailed tariff analysis to help transition to the most suitable tariff option in the future.
Trial 2
- Participants will use Tariff 24, which is a new seasonal time of use demand tariff.
- The aim of this trial is to better understand how this new tariff works for agricultural customers in comparison with their current tariffs. It is expected some customers will make immediate savings on this demand tariff but in the event they don’t, they will pay no more than what they would have on their current tariff.
- At completion of the trial, participants can choose to receive detailed tariff analysis to help them transition to the most suitable tariff option.
Trial 3
- Participants will remain on their current tariffs, but will receive a free digital electricity meter that records energy consumption and demand in 30 minute intervals.
- Their usage data will help Ergon improve its understanding of the load profiles of agricultural customers under current arrangements and also allow for comparisons with the other two trial groups.
- Participants will receive consumption reports and detailed tariff analysis to help them transition to the most suitable tariff option in the future.
Sally Gall
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
