The Queensland Government has released the terms of reference for the Queensland Competition Authority (QCA) to determine regulated retail electricity prices for the next three years.

 

Energy and Water Supply Minister Mark McArdle said the QCA would develop electricity tariffs for 2013-14 to 2015-16 that better reflect the cost of delivering electricity.

 

“Every Queenslander is affected by electricity price increases and it’s important to provide greater long-term certainty, especially in relation to regulated (notified) prices,” Mr McArdle said.

 

“I have also directed the QCA to provide annual price determinations for each year of the three-year delegation period to help households and businesses plan beyond a one year horizon.

 

“The Newman Government is committed to addressing the increasing cost of living pressures facing households, which is why we provided short-term relief by freezing the standard residential Tariff 11 this year.”

 

Mr McArdle said the QCA would consider several important factors in its pricing process, including measures to help Queenslanders deal with the government’s electricity pricing reforms.

 

“The QCA will consider transitional arrangements over several years for the standard residential Tariff 11, obsolete tariffs, including farming and irrigation tariffs, and large business tariffs in Ergon Energy’s distribution area outside the south east,” he said.

 

“These arrangements will help alleviate the impact on customers, identified by the QCA in its Draft and Final Determinations for 2012-13, who will move to cost-reflective tariffs.”

 

Mr McArdle said the QCA would undertake a thorough consultation process with relevant parties, consider all submissions and publish the results.

 

“Consultation will start in the coming weeks with the release of an interim paper,” he said.

“The Queensland Government expects the QCA to fully explain its decisions to consumers and I encourage all interested parties to actively participate in the consultation process.”

 

Mr McArdle said the Queensland Government had also established longer-term reform processes to address unsustainable electricity price increases.

 

This includes establishing an Inter-departmental Committee on Electricity Sector Reform and an Independent Review Panel to examine the cost of poles and wires (transmission and distribution networks) due to report back to the Queensland Government in late January 2013.

 

The QCA’s terms of reference and interim consultation paper can be downloaded from www.qca.org.au