Solar back step to leave QLD customers haggling
Up to fifty thousand Queenslanders will soon have to negotiate their own solar feed-in tariff, with the State Government changing its scheme and leaving regulation to consumers.
Queensland Energy Minister Mark McArdle has announced the mandated 8 cent tariff provided by Energex and Ergon will be cut off.
Customers will instead negotiate directly with retailers, negotiating their own tariffs, likely on an individual basis.
Regional customers of energy firm Ergo will have their rate set by the Queensland Competition Authority, while those in the Energex region will have to cut a deal free from government regulation.
The changes apply to about fifty thousand customers, while over 204,500 customers who signed up to a 44-cent tariff before June 2012 will maintain the higher rate until the previously promised 2028 cut-off.
Energy Minister Mark McArdle said the changes would apply “downward pressure” to prices he says have been “left unchecked” to the tune of an extra $110 million on power bills in the next six years.
Electrical Trades Union state organiser Stuart Traill said the move is “as ridiculous as it is ineffectual,” given that 285,000 solar customers will continue receiving 44 cents/KwH until 2028.
“The LNP has made it clear since taking office that they have a pathological hatred against renewable energy and this is the latest step in their mindless pursuit of free market ideology in the Queensland energy sector,” the ETU’s statement said.
“Abandoning those customers on 8c to deal directly with retailers is impractical and unfair. Does the government seriously expect householders to negotiate with large energy corporations?
“The statements by the minister that 'increased competition will lead to better deals for consumers’ is laughable. It didn't work for retail prices and it won't work for solar tariffs.”
Solar Citizens national director Lindsay Soutar has also slammed the decision.
“This is incredibly unfair,’’ she said.
‘‘It is obvious that it will be difficult for individual households to get a good deal from their power company. They simply don’t have the negotiating power. When retailers set the rules, solar owners lose.
“Families have made the move to solar to take back control of their power bills. But now that the Newman Government is capitulating to big energy companies, it’s going to be that much harder.”
Reports from the Queensland Energy Department say that if the carbon tax is repealed, power prices will increase by 5.4 per cent (an average $76). If not, electricity bills will rise by about 13.6 per cent or $192.