Published: January 22, 2009 - 08:57 PM
The ABC has reported that Queensland Electricity is set to increase their rates by more than 20%.
Following the announcement of the increase that will effect 60,000 customers of the electricity provider, the Queensland Energy Minister recommended that people go and switch electricity suppliers if they are affected by the increase.
Since deregulation of the Queensland electricity retail industry three years ago, the regulated price has increased by over 30%. The Queensland government as been criticised by the opposition who argue that deregulation was supposed to bring competitiveness to the market and ensure electricity rates remained cheap.
Ironically, the Queensland government has also been criticised by the major electricity industry suppliers AGL and Origin Energy for not setting the regulatory rate high enough in 2008, thereby making it difficult for electricity providers to make a profit. (See previous article on Queensland rising electricity rates.)
The experience of deregulation in Queensland has been different to that in Victoria where deregulation of the electricity and gas retail sectors culminated on 1 January in the removal of the final regulatory price cap. Victorian electricity supplier and gas providers are now subject to a full disclosure system, and they must publish a range of their offers on the Essential Services Commission website.
Alison Walter of ShopAround.com.au said that "Whilst Queensland households may not yet have fully benefited from cheaper electricity rates that should be brought about by deregulation, the Victorian experience has shown if correctly promoted by the Government, deregulation can work for consumers. In Victoria, it is important now that consumers do their homework and make sure they compare electricity companies and gas suppliers to ensure they are getting the cheapest electricity possible and make the choice to go and switch if it's right for them."
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