Queensland farming businesses on transitional and obsolete tariffs will have less than three weeks to assess new retail tariffs and implement any required infrastructure when the Queensland Competition Authority’s (QCA) final determination on 2021-22 regulated retail electricity prices is handed down on June 11.
From 1 July, many of the tariffs that were specifically designed to meet the needs of irrigation and other farming activities will be phased out, leaving farmers, particularly those classed as large users, to negotiate higher cost demand-based tariffs.
Queensland Farmers’ Federation (QFF) CEO Dr Georgina Davis said the standard business demand-based tariff options were limited and largely unsuitable for the state’s agriculture sector, resulting in significant electricity price increases for many farmers.
“As of April 2021, there are still over 20,000 electricity users across Queensland on obsolete and transitional tariffs, of which, more than half are for farming and irrigation purposes,” Dr Davis said.
“The current lack of clarity on what tariffs would be suitable for irrigation, agri-processors and other agricultural-specific operations, and the significant bill increases that many farmers will face moving from transitional tariffs to standard business tariffs is unacceptable.”
“The QCA and the Queensland Government have had several years to set out a clear path for affordable energy, now farmers will be against the clock to assess the new retail tariffs, work out what was best for their business and if any structural change or new equipment is needed.”
“Concerningly, farmers who do not transition to the new demand-based tariffs before the deadline will have the decision made for them, so we encourage farmers to speak to their energy retailer as soon as possible.”
“In the meantime, QFF continues to call on the Queensland Government to set out a clear path for affordable energy by efficiently pricing electricity and increasing investment to help farmers improve their energy efficiency and remain viable into the future.”