Power costs to rise dramatically in QLD

News posted on 16.12.2013 on Research & developement

The Courier Mail (12/12/13) has reported that household bills are expected to surge by $200 per year primarily due to an increase in the fixed daily service charge.

The Queensland Competition Authority (QCA) yesterday recommended a 66% increase in fixed daily service charges to ensure they reflect the cost of supplying electricity, taking the daily cost of electicity from 55c/day currently to $1.28 beyond 2014/15. Queenslanders will pay around $466 / year just to have access to electricity.

In their defence, QCA chairman Malcolm Roberts claimed the price increases still remain below the real cost of supplying power, and that customers should also pay lower costs per kw in the future as a result of the flat service fee changes. 

The price changes are to be implemented progressively over the next 2 years resulting in a projected decrease in the variable per kilowatt hour charge in 2015/16.

The main driver of the price hikes however was not network costs but an increase in the wholesale cost of electricity. Electricity suppliers blame the carbon tax for the increased costs, however, Opposition treasury spokesman Curtis Pitt said bills would rise by just three per cent if the carbon tax and green schemes were the only factor rather than the 13.6 per cent rise recommended by the QCA.

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