Published: September 10, 2008 - 08:53 PM
By Amanda Edmonds
The Courier Mail has reported that electricity prices are set to rise by 5.68% in Queensland. The electricity price rise will cost Queensland households about $100 per year.
The rise in electricity costs has been set by the Government’s Queensland’s Competition Authority which sets the maximum amount that Queensland electricity suppliers are allowed to charge for electricity.
Despite the 5.68% increase in electricity prices, two of the largest Queensland electricity companies, Origin Energy and AGL, are taking legal action against the state’s competition watchdog, claiming they have undermined their profits.
The electricity suppliers claim that the rise in the capped Queensland electricity price introduced by the QCA is not high enough and electricity prices are too cheap. They argue the electricity price rise should in fact be 9% this year, or a $144 increase.
Origin Energy and AGL have accused the watchdog of using incorrect legislation to introduce the price rise, and the wrong calculation theory, leaving them “adversely affected.”
Last year there was an 11% rise in gas and electricity prices, despite the Queensland government promising that competition would drive prices down leading to cheaper electricity and cheap gas prices.
Jeff Seeney, the Opposition energy spokesman said “the Government very clearly and repeatedly promised that the changes would result in cheaper electricity but they clearly haven't."
Gas rates and electricity prices have risen alongside Origin and AGL’s profits. Origin recorded a 13% increase to a record high of $517million, while AGL posted an 8% rise to $335million.
Both electricity suppliers and gas companies have been in hot water recently, having been fined tens of thousands of dollars for not passing on senior’s discounts.
The Energy Retailers Association has supported AGL and Origin Energy, claiming they have been victimised regarding a new penalty system for Queensland electricity and gas suppliers caught overcharging customers. They believe the Government's new $40 rebate for over-pricing gas and electricity services, showed there was an "open slather" policy against them.
David Power of ShopAround.com.au commented that “If any Queensland consumers have been affected by a Queensland electricity company or gas supplier not passing on senior’s discounts customers they can make sure they are getting value for money when they shop around for their gas and electricity provider. ShopAround.com.au offers a free valuable service of comparing gas prices and comparing electricity companies. It is disappointing that competition hasn’t led to a cheap electricity and cheaper gas in Queensland, but at least Queenslanders now have a choice about which energy company they deal with and can shop around for better customer service from their electricity supplier.”
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