8 Mar 2017
The rising cost of electricity continues to be the number one common concern across intensive agriculture. Many farm businesses continue to experience unsustainable price increases, and disappointingly, coherent and practical solutions still appear to be over the horizon.
For some time now the Queensland Farmers’ Federation (QFF) and its industry members have pointed out that the current system is broken. Further, the issues of high energy pricing and reliability are being unhelpfully politicized. The political argument has been reduced to ‘renewables versus fossil fuels’. A more useful debate would focus on the inadequacy of the networks and the organizational governance hindered by a set of rules which seem to no longer be fit-for-purpose.
Under the current quasi-federal system, there is no clear accountability for the increasing costs, falling productivity or inadequate supply. Where there is no accountability, reform is hard if not impossible.
QFF has frequently pointed out the impact of inaction on Queensland agriculture – price rises of 120 to over 300 per cent since 2007, which have lowered on-farm productivity, challenged farm profitability, and eroded our international competitiveness.
There have been several government reviews on various aspects affecting the national electricity market (NEM), but none have resulting in reforming action. QFF is hopeful the most recent tranche of reviews including the ‘Finkel Review’ into the future security of the NEM, and the AER consultation on the demand management incentive scheme will encourage positive reform.
Australia, particularly Queensland, is blessed with a surplus of every conceivable energy source and the technical and managerial human resources to capitalise on them. In today’s globalised world, governments that do not recognise, leverage and exploit our energy comparative advantage are not acting in the best interests trade exposed sectors like agriculture or the nation.
Leadership and collaboration between different levels of government is needed to deliver practical, long term solutions on electricity affordability.
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