The Queensland Farmers Federation (QFF) acknowledges Energy Minister Mark Bailey’s statement yesterday recognising the progress of the industry-led Energy Savers Program (ESP). But QFF reiterates its concerns with an energy system that is failing Queensland farmers.
In his statement, Minister Bailey recognised the positive work being undertaken through the QFF ESP to assist farmers realise and implement on-farm energy savings.
QFF President Stuart Armitage said that QFF industry members and Ergon Energy were currently working to address tariff issues for intensive agriculture in a ‘tariff trial’ to ensure suitability, particularly for irrigation post 2020 when the current transitional tariffs will be removed.
“In this tariff trial, half of the applicants for Tariff 24 were prevented from switching to this new ‘irrigation tariff’ because they would have been up to 25% worse off,’ said Mr. Armitage.
“One of the key functions of the audits conducted as part of the ESP was to review farmers’ tariffs and tariff options. A number of these audits identified that some farmers were significantly better off returning or switching to transitional tariffs, which will be unavailable in 2 years.”
“A luxury farmers do not have is deciding when they pump water, as they factor in crop requirements, climatic conditions, water licencing and irrigation channel conditions.”
“ESP has provided farmers with the knowledge to invest in energy efficient technologies. However, these savings do not compensate for the impacts of systematic and unsustainable electricity price rises.”
“QFF and its members recognise the important contribution the ESP has made to on-farm investment decisions; however, the current program only considers energy use and does not address the synergy to water efficiency.”
“Farmers understand that the efficient and sustainable use of resources underpins economic competitiveness, productivity and environmental sustainability. However, government remains disconnected from the energy-water nexus that the sector faces.”
“QFF is advocating for a range of solutions to address unsustainable and unjustifiable electricity prices in Queensland. Research is also needed determine how electricity prices are holding regional communities back by stifling growth and employment. Electricity prices must be set at an efficient level.”