Annual Report 2023-24

Electricity & Water

Policy activities

Working to achieve lower prices

In 2023-24, CANEGROWERS played a pivotal role in addressing the evolving challenges and opportunities in electricity and irrigation water management for Queensland’s sugarcane growers. 

As the industry adapts to changing energy policies and fluctuating power and water costs, CANEGROWERS remains committed to advocating for fair and sustainable resource management.

With a focus on transparent pricing and improved infrastructure, the organisation aims to ensure growers can effectively manage their energy and water needs while maintaining profitability.

Electricity
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The transition toward renewable energy, spurred by government initiatives, presents complexities for growers, particularly in adapting to new electricity pricing structures like time-of-use tariffs and smart meter rollouts. 

While these innovations offer potential cost savings, they also necessitate significant investments in upgraded irrigation systems and practices, adding to growers’ operational costs.

The fluctuating nature of these tariffs complicates planning, underscoring the need for improved irrigation control as the energy landscape evolves. 

CANEGROWERS’ advocacy centered on ensuring growers’ needs are represented in the energy governance framework, which involves multiple federal and state-level policies, including the Integrated System Plan. 

The organisation emphasised landowners' rights, managing biosecurity risks, and fostering transparent communication between energy infrastructure developers and the farming sector. 

Notably, the introduction of the new 22C electricity tariff, which offers off-peak and shoulder rates but imposes a "penalty rate" during peak hours, required targeted support. 

In response, CANEGROWERS developed an electricity tariff tool to help growers optimise energy use. 

The organisation remains dedicated to securing fair energy policies that support sustainable and profitable farming.

Water
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Queensland's irrigation history is marked by decades of development, driving agricultural and regional growth. 

However, modern water management has shifted from subsidised expansion to cost-reflective pricing models. 

CANEGROWERS’ advocacy efforts, alongside partners like the Queensland Farmers’ Federation (QFF), have helped maintain lower-bound pricing principles and prevent sudden cost increases for growers. 

Actively participating in Sunwater’s consultative committee for the upcoming 2025-2029 irrigation water pricing proposal, CANEGROWERS addressed critical issues like the shift from the Annuity approach to a Regulatory Asset Base model. 

The organisation stressed the importance of efficient, transparent pricing and urged the government to ensure water affordability, given that roughly two-thirds of Queensland’s sugarcane production relies on stable water access. 

CANEGROWERS also engaged with several government water initiatives, including the Queensland Water Strategy, the Strategic Water Infrastructure Plan, and updates to basin-specific water plans. 

Key issues addressed include the Water Amendment Bill, improved water metering standards, and safety measures at Paradise Dam. 

CANEGROWERS will continue to engage with Sunwater and the Queensland Competition Authority (QCA) to achieve fair irrigation pricing, recognising its vital role in supporting industry productivity and mill viability.

In both energy and water, CANEGROWERS remains committed to advocating for cost-effective policies, supporting sustainable practices, and ensuring that growers’ interests are at the forefront of regulatory developments.