This week, the Queensland Government made commitments to address the issues of increasing electricity costs and security of supply. The Queensland Farmers’ Federation (QFF) welcomed this pre-Budget announcement, but judgement is reserved until real price relief in the form of lower electricity costs for all regional businesses is delivered.
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The government announced energy will be central in its $1.16 billion pre-Budget ‘Powering Queensland Plan’. The plan is designed to ensure affordable, secure and sustainable energy supply for Queensland homes, businesses and industry. The plan includes $386 million to strengthen and diversify north Queensland's energy and water supply and a $770m investment to cover the cost of the Solar Bonus Scheme.
While it is encouraging that the government has demonstrated it has the power to intervene in a broken system to address electricity prices – something QFF has argued for a long time – it is very frustrating and disappointing that it has taken so long to see any action.
Securing more gas supply and, in turn, gas powered generation as we move to decarbonise the economy and to ensure security of supply is a good step forward. This move will become more relevant as renewables become more prominent across Queensland.
Actions to address issues around sourcing and bidding on the national electricity market to supply Queensland also makes sense, including the move to change the Stanwell Corporation’s bidding practices in the NEM with the intention to achieve lower wholesale prices.
However, let’s not forget the financial realities Queensland businesses already face. From December 2016 to March 2017, the Australian Energy Regulator reported a staggering 73 per cent increase in the number Queensland businesses being disconnected for non-payment.
Any efforts that begin to apply long-term downward pressure on electricity prices in rural and regional Queensland are a step in the right direction and have QFF’s support. Time will tell whether this suite of reforms will deliver some relief, which Queensland farmers urgently need.
