LABOR will limit increases in electricity prices to no more than the rate of inflation, while the LNP says it will cut average power bills by $160 a year.
This was the offering made by the major political parties today in the run-up to the November 25 Queensland election.
LNP leader Tim Nicholls said he would undertake major economic reforms to end what he called Labor’s secret tax on electricity.
“This is not a one-off sugar hit like Annastacia Palaszczuk’s paltry 96 cents per week offering,” Mr Nicholls said.
“After 2020 the savings will increase by an average $300 per year by stopping the subsidies for renewable energy.
“This will mean a typical Queensland family will be $460 a year on average better off under the LNP than Labor.
“These reforms will not only deliver cheaper electricity for households but business, farmers and industry as well.”
According to the Queensland Farmers Federation electricity prices for farmers have risen by more than 130pc since the pricing system changed nine years ago. This year alone prices rose by 5.1 per cent. Over the same period CPI has increased by just 21pc.
The “96 cent per week sugar hit” referred to by Mr Nicholls is Labor’s promise of a $50 annual ownership dividend to be paid to households.
Palaszczuk government Energy Minister Mark Bailey said Labor would cap electricity prices for households and small business to no more than inflation.
There would also be annual discounts for regional Ergon customers of $75 for households and $120 for small businesses that take up Ergon’s direct debit payment options, he said.
The Queensland Resources Council welcomed the LNP's electricity policy, in particular its focus on injecting more competition into the generation market.
QRC chief executive officer Ian Macfarlane said rapidly increasing wholesale electricity prices undercut the competitiveness of the resources sector. That hit the economy of regional Queensland, he said.
Mr Macfarlane said is was now essential that Labor also outlined a plan to cap the sharp increases in wholesale costs which are holding back further investment and jobs.
“In the last five years, resources companies have absorbed a three-fold increase in the wholesale cost of electricity. In a recent QRC survey, the leaders of the state's resources companies highlighted electricity prices as a key concern potentially holding back new investment,” Mr Macfarlane said.
“QRC is pleased to see the election campaign focus on the cost of electricity across the board, from generation, transmission and wholesale costs through to household bills.
“We support more competition in dispatchable electricity generation by establishing a third generation corporation. That competition will help push down prices when large industrial contracts are negotiated for Queensland's smelters, refineries, gas compression and at mines.”
QRC also welcomes the inclusion of high-efficiency low-emissions coal-fired power in the state's future energy mix.
“Queensland has access to the full range of energy sources, from coal to gas to renewables,” Mr Macfarlane said. “It makes sense to apply the best technology across all of these generation types to power Queensland and support industry.”
KAP leader Robbie Katter said the LNP has no credibility when it came to electricity prices.
“The LNP talk a big game but have delivered little in the past to bring down electricity prices,” Mr Katter said.
“When they were in Government electricity, prices went up and I doubt the people of Queensland really trust them to stick to their word.
“The LNP claims their plan will bring down prices by $160 a year with further increases beyond 2020. You can fairly safely say the LNP will try and squirm out of any commitment, so they must be held to account by a KAP-led crossbench.”
