Qld: Households face third power hike under deregulation

AAP General News (Australia)
12-02-2008
Qld: Households face third power hike under deregulation

By Gabrielle Dunlevy

BRISBANE, Dec 2 AAP - Queenslanders are facing their third hike in electricity costs
in three years - but the government maintains consumers are benefiting from deregulation.

The Queensland Competition Authority (QCA) on Tuesday released its draft decision to
increase the maximum charge for electricity by 13.6 per cent from July 1 next year.

It would add $4.20 a week, or $55 a quarter, to a $400 quarterly bill.

The QCA said the rise was needed because of higher fuel and capital costs as well as
increased transmission and distribution costs.

Opposition treasury spokesman Tim Nicholls said the government had promised no one
would pay more with competition, but there had been hikes of 11 and five per cent since
deregulation began.

"This government has failed to understand fully the implications of their actions when
it comes to finances," Mr Nicholls told reporters.

"It means Queenslanders are now going to be something in the region of 31 per cent
worse off than they were two years ago before this government `fixed up' electricity."

Despite being disappointed with the size of the latest recommended hike, Energy Minister
Geoff Wilson said deregulation had worked - even though only about 514,000 people had
exercised their right to shop around for a cheaper price.

"If they did not have that choice they would be forced to pay that maximum cost," Mr
Wilson told reporters.

"It's certainly helped people make savings on their total bill."

Queensland Council of Social Service director Jill Lang said the rise was unwarranted.

"We will see even more vulnerable Queenslanders face disconnection," she said.

"Electricity is a necessity, not a luxury."

Mr Wilson said the government would examine the price decision, but it could not overrule
the decision.

"The independent economic regulator, they're the ones to decide what increase in costs
of supply of electricity has taken place in the last 12 months," Mr Wilson said.

"We will argue the case on behalf of the consumer because we believe that this ...

draft decision by the QCA is a blow to the battlers and for everyone."

The government will make its submission on pricing within a month.

AAP gd/pjo/jl/de

KEYWORD: POWER QLD WRAP

2008 AAP Information Services Pty Limited (AAP) or its Licensors.