Retail electricity prices will continue to be regulated in regional Queensland, where competition is limited. A key barrier to competition is the provision of subsidies to Ergon Energy Queensland to maintain the uniform tariff policy.
The Government has announced that it will examine options to improve competition in regional areas, including the development of more effective subsidy arrangements to maintain the UTP. It has also signalled that it will consider whether subsidies could be better targeted to those most in need.
As part of this process, the Minister for Energy and Water Supply directed us to investigate and report on matters relating to the uniform tariff policy and retail electricity price regulation in regional Queensland.