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30/06/09QCA to review Queensland electricity pricing regime
Queensland's retail electricity pricing regime and tariff structures will be comprehensively reviewed by the independent Queensland Competition Authority.
Natural Resources, Mines and Energy Minister Stephen Robertson said the Bligh Government had directed the QCA to review the current methodology it uses to determine annual regulated electricity prices as well as existing tariff structures.
The two-stage review will:
- examine the current electricity pricing methodology and alternative methodologies for reflecting the costs of supplying electricity, including network costs and accounting for all State and Commonwealth Government environmental obligations; and
- examine Queensland's existing retail electricity tariffs and alternative tariff structures which may assist in the long-term management of peak electricity demand and provide an incentive for customers to use electricity more efficiently.
The review outcomes will inform the Government's considerations of any amendments which may be required to be applied in the process to determine 2010-11 electricity prices.
"This review is all about delivering greater pricing certainty to Queensland electricity consumers and retailers alike," Mr Robertson said.
"Peak electricity demand in Queensland is skyrocketing as our population grows and we use more energy-hungry lifestyle products like home air-conditioners, large-screen televisions and swimming pools.
"Unfortunately, the cost of producing, transmitting and distributing electricity is rising sharply right across Australia.
"That's why the QCA will examine whether it is appropriate to consider more contemporary tariffs which provide incentives for consumers to use electricity more efficiently.
"It is important that Queensland electricity consumers, wherever possible, have the opportunity to benefit from competition and efficiency in the market place.
"The Bligh Government supports a competitive retail electricity market in Queensland.
"For the retail market to be successful, electricity prices must cover the costs incurred by efficient industry participants and enable retailers to manage potentially large and volatile changes in costs.
"The current methodology used by the QCA to set regulated electricity tariffs has been in operation since 2007 so it is timely to have this detailed review," Mr Robertson said.
The QCA must report to government on its review of electricity pricing and existing tariff structures by 31 August 2009; and on its review of alternative tariff structures by 30 November 2009.
Further information about electricity pricing and ways to save energy and keep electricity bills in check is available at: www.energy.qld.gov.au
Media contact: Minister's office 07 3225 1819
Last Updated 03 November 2009
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