To bring down the price of electricity, immediate reform of the electricity market is needed. CANEGROWERS has been very active in championing policies and changes to the National Electricity Rules that are designed to ensure the electricity supply chain is as effective and competitive as other electricity supply chains around the world.
The Uniform Tariff Policy (UTP) and the Community Service Obligation (CSO)
The Community Service Obligation (CSO) was designed to ensure all Queenslanders had access to equitably priced electricity, under a Uniform Tariff Policy (UTP). Traditionally, the CSO was a net liability on the Queensland Government’s balance sheet because more was paid in the CSO than Ergon received in profit. Until recently, regional Queensland electricity users have been subsided. However, with the rapid rise in electricity prices in the past seven years, it is important to review policies like the CSO to see if they are still achieving their objectives. For the CSO, the short answer is, no.
Put simply, Ergon’s profits have grown so quickly over the past seven years that they now cover the total cost of the CSO, with the capacity to provide a solid dividend to the Queensland Government.
The Uniform Tariff Policy is also changing too. CANEGROWERS provided a submission to the QCA review, it covers issues associated with retail pricing for Regional Queensland, following the deregulation of the South East Queensland retail electricity market.
CANEGROWERS submission to QCA review of UTP
- Community Service Obligation factsheet - coming soon
PowerQ – Queensland’s 30 year strategy
The Queensland Government has released its 30-year strategy for the electricity sector called PowerQ. CANEGROWERS supports efforts to reform of the electricity sector, particularly around better defining the different roles of policy maker, owner and regulator – and the Queensland Government plays a key role in all of these areas.
CANEGROWERS is encouraged to see that the Queensland Government recognises the price of electricity is a key issue that must be addressed as a part of its strategy.
Click on the links below to see the PowerQ report, discussion paper and CANEGROWERS submission.
PowerQ - a 30 year strategy for Queensland's electricity sector
PowerQ discussion paper
CANEGROWERS submission to PowerQ