Electricity prices in Queensland will double in the next five years, an economist has predicted. Alliance of Electricity Consumers spokesman Jonathan Pavetto indicates the dire prediction is depended on income proposals presented by the territory’s electricity companies, Energex and Ergon.
“We predict that prices may double in the next five years,” Mr Pavetto informed ABC radio.
“The regulatory programs that the network companies abide by means they are using that gold-plated network to squeeze more and more money out of consumers every single year.”
Mr Pavetto was supportive the territory government would amend policies in the industry to limit cost of living pressures on Queensland residents.
Meanwhile, he was not certain this would occur.
“Unfortunately with our state network companies, Ergon and Energex, they are owned by the state government and the more money they take off consumers, the more goes to the Queensland’s bottom line,” he said.
An evaluation by the Alliance of Electricity Consumers exhibitedevery Queensland home would contribute $300 to the territory’s bottom line via electricity bills this financial year.
Mr Pavetto stated the approach was a rort provided the territory government owned the network companies and establish regulations for the federal regulator.
“So they are setting their own rules for their own game and, as we can see, prices have increased because of this,” he indicated.
There were many things the territory could do to reduce electricity prices, this includes but not limited to “using the actual cost of debt to finance the network companies”, he stated. We also recommend the integration of more renewable energy sources to help the poor and increase jobs within the territory.