Electricity prices 2014–15

Electricity prices 2014–15

11 Dec 2013

Electricity MEDIA RELEASE

The Queensland Competition Authority (QCA) released today its draft decision on regulated electricity prices for 2014–15.

“The draft decision explains what we believe will be the prices necessary to ensure reliable electricity supply in 2014–15,” said QCA chairman Malcolm Roberts.

“The QCA is releasing these forecast prices for consultation with the community. We understand that price increases will cause hardship for many customers, especially after the steep price increases introduced on 1 July this year.

“However, it is clear that costs are still rising.

“The cost of generating electricity is expected to rise by 29% in 2014–15, adding $68 to the bill paid by the typical residential customer.

“The cost of the Solar Bonus Scheme will double in 2014–15, adding another $57.

“While ‘poles and wires’ no longer account for the largest increase in costs, networks are still likely to add $50 to the typical bill.

“Overall, on the numbers available now, the typical residential customer can expect an increase of 13.6% or $192 in their annual bill. Business customers would face similar increases,” said Malcolm Roberts.

“As it is possible the carbon tax will be removed during 2014–15, the QCA has released a second set of prices which would apply if the carbon tax disappears.

“Removing the carbon tax will cut the foreshadowed price increases back to single digits for the main business and residential tariffs. The typical residential customer, for example, would face a price increase of 5.4% rather than 13.6%, with a saving of $116.

“The saving would be greater if the customer also uses an off-peak tariff for appliances such as water heating and pool pumps.

“The QCA is proposing to continue with increases to the transitional tariffs paid by some business customers.

These tariffs offer lower prices than other business tariffs, costing the taxpayer an estimated $110 million in subsidies during 2012–13.

“The QCA recognises that many businesses would find it difficult to pay the full costs of their electricity immediately. The QCA is proposing to phase out most of these tariffs in 2020.

“The QCA will release its final decision on electricity prices by 31 May 2014.

“The forecast price increases announced today may change as more data becomes available closer to July 2014,” said Malcolm Roberts.

Submsissions are welcome on our draft decision, and community consultation is set to commence early 2014.

Our price comparator can help customers compare electricity prices in Queensland. The tool is free to use and also available on our website.

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