Regulated retail electricity prices for regional Queensland in 2017–18

Regulated retail electricity prices for regional Queensland in 2017–18

24 Feb 2017

Electricity MEDIA RELEASE

Media release

Regulated retail electricity prices for regional Queensland in 2017–18

The Queensland Competition Authority has today released its draft decision on regulated retail electricity prices for regional Queensland in 2017–18.

QCA Chair Professor Roy Green said the review of notified prices began in November 2016 under a delegation from the Minister for Energy, Biofuels and Water Supply, the Hon. Mark Bailey.

“This year’s draft decision forecasts small increases across the main residential and small business tariffs,” Professor Green said.

“While there has been a marked increase in expected wholesale energy costs since the 2016–17 final determination, this has been largely offset by an expected decline in network costs.

“In line with the anticipated change in the consumer price index, the draft forecasts show a 1.7 per cent increase in the annual bill for a typical customer on the main residential tariff (tariff 11) and a 1.5 per cent increase for the typical customer on the main small business tariff (tariff 20).

“The annual notified price bill for a typical customer on the main residential tariff is expected to increase by $25 from $1,490 to $1,515. For the typical customer on the main small business tariff, the annual increase is expected to be $37 (from $2,449 to $2,486).

“The draft decision is based on the latest information from competitive electricity markets and on expert analysis from ACIL Allen.”

Professor Green said ACIL Allen had advised the forecast rise in wholesale energy costs was primarily because of the projected tightening supply-demand balance within the National Electricity Market.

“This can be attributed to several factors including an increase in demand for electricity from in-field gas compression for LNG export facilities,” Professor Green said.

“It is important to note we set prices in accordance with the Queensland Government's uniform tariff policy, which means most regional customers pay significantly less for electricity than it costs to supply.”

Professor Green said this was a draft decision and it was highly likely there would be changes in the final decision because of changes in the expected costs of supply.

“We strongly encourage stakeholders to review our draft decision and provide 3 April 3 2017 in finalising our decision. More information on how to make a submission is available on our website,” he said.

The final decision will be published by May 31 with the prices to apply from 1 July 2017. The regulated prices are only available to customers in the Ergon distribution region as retail electricity prices in south east Queensland have been deregulated from 1 July 2016.

For more information go to www.qca.org.au.


 

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