LNP promise of new irrigation tariffs welcome

LNP promise of new irrigation tariffs welcome
October 29 2020

A commitment from the Liberal National Party to reduce electricity costs and establish a set of new agriculture-specific tariffs has been welcomed by the peak sugarcane growers’ organisation CANEGROWERS.

“The LNP promise that if successful at the election this weekend, within 100 days of forming government it will task the Queensland Productivity Commission to design a new range of tariffs, has given hope to irrigators that affordable electricity can be delivered ,” CANEGROWERS CEO Dan Galligan said.

“To realise this objective, the Commission should not be confined to working within a demand-based structure, rather it must be allowed to take an unhindered look at whatever structure will deliver cheaper prices and lower power bills.

“CANEGROWERS analysis proves that most irrigated agriculture is on non-congested parts of the electricity network and that a range of tariffs designed to meet the specific demands of agriculture are plausible and workable.    

 “Our message to the review will be consistent with what CANEGROWERS has been calling for – prices for irrigators should be capped at a fair 16 c/kWh," Mr Galligan said.

Irrigation is the backbone of Qld agriculture and supports just over 60% of Queensland’s $2bn sugarcane crop.  

CANEGROWERS is ready to work with the next Queensland Government on an electricity pricing regime that supports agricultural production in the state and harvests the significant potential for growth and diversity in our industry.