The Queensland Government has released its response to the recommendations to the Queensland Productivity Commission’s (QPC) Electricity Pricing Inquiry Final Report with a specific emphasis on regional and agricultural businesses.
Queensland Farmers’ Federation (QFF) President Stuart Armitage welcomed the government’s announcement of a $10 million Regional Business Support Package.
The Regional Business Support Package includes:
- Up to $2 million for the targeted deployment of new meters to allow large business customers to identify specific bill impacts across tariff options;
- $400,000 for a Small Customer Impacts Trial and $500,000 to build greater capacity to convey electricity bill impacts to each customer under different tariff options, to facilitate improved customer understanding of electricity bill impacts;
- $500,000 to enhance and promote existing energy audit services to help customers understand how to lower their electricity bills; and
- $ 4–6 million in funding to undertake a trial to test the benefits of government co-contributions to help business customers on transitional and obsolete tariffs to invest in operational and equipment changes to manage bill impacts.
“Whilst the support package will not directly lower electricity prices, it is positive that the government is at least acknowledging the impact reoccurring electricity prices increases are having on farming businesses,” said Mr Armitage.
“QFF commend the government for listening to industry’s concerns around effectiveness of the current efforts in getting farmers to transition from the ‘transitional and obsolete’ tariffs to standard cost-reflective tariffs by 1 July 2020.”
“With over 42,000 regional businesses currently transitioning to the cost-reflective tariffs by 1 July 2020, there is still a long way to go in supporting and assisting these businesses.”
“QFF in particular welcome the Agricultural Tariff Trial project as an opportunity for farmers to understand their energy use through the use of ‘smart’ metres to allow them to identify the most appropriate new tariffs.”
“QFF is looking forward to continuing its work with government to ensure further work is undertaken to assist farmers and businesses better understand the options available to improve value for electricity customers, particularly those in regional Queensland. By addressing distortions in the market such as the non-reversion policy which has had limited effect in supporting the expansion of competition in regional Queensland.”
“1 July 2020 is fast approaching and time is running out for both industry and government to put the right frameworks in place to ensure Queensland farmers are ready for the tariff transfer.”
“QFF and its industry members will continue to work constructively with government to ensure our sector is ready for the tariff change over in 2020.”
QPC Electricity Pricing Inquiry Final Report available HERE.