Electricity pricing has again dominated the nation’s headlines with the ACCC confirming what farmers already know: that electricity price increases are unsustainable, especially in Queensland, for the exact reasons QFF has been pointing out for several years. Unsurprisingly, this ‘sudden revelation’ coincided with the Federal Government’s decision to ditch the Clean Energy Target (CET) in favour of its ‘National Energy Guarantee’ (NEG).
It remains to be seen whether the NEG can garner the bi-partisan support needed to create the stable investment environment energy companies have long sought; however, one thing that is certain is that the ongoing ‘energy crisis’ will have implications at ballot boxes throughout the country, with Queensland being the first state to the polls.
Over the past decade, Queensland farmers have experienced electricity price increases of more than 130 per cent, some even higher. Over the same period, CPI has increased by just 21pc. The viability of farming and other regional businesses continues to be challenged, almost solely due to the rising cost of electricity.
Despite assurances from politicians over several years of ‘downward pressure on electricity prices’, there has been no reprieve. It is now past downward pressure; immediate price relief is needed.
The Queensland Government demonstrated earlier this year that it can intervene in the energy market. The Tasmanian Government has already moved to cap wholesale power prices.
This election, QFF urges all political parties to commit to the following actions to drive down electricity prices in the interest of farmers, regional businesses, regional communities and the state’s economy:
- Direct Energy Queensland to optimise network assets and set network prices at efficient levels, at least 40pc below existing levels.
- Remove the hidden taxes on the Government Owned Corporations, such as competitive neutrality payments.
- Remove the solar bonus from a network charge.
- A comprehensive reform of existing electricity network tariffs to ensure network tariff reform that delivers cost improvement and relief for farmers.