Regional Queensland Braces For Power Price Hike

A draft determination from the Queensland Competition Authority indicates regional Queenslanders will be paying more for electricity in 2022/23 – and big business will be hit particularly hard.

The QCA released its draft determination on regulated retail electricity prices for regional Queensland to apply in 2022–23 on Friday. While not yet set in stone, the draft determination indicates the following:

• Typical customers on the main residential tariffs (tariffs 11, 31 and 33) are expected to pay around 4.2 to 6.5 per cent more for their electricity in 2022–23.
• Typical customers on the main small business tariff (tariff 20) are expected to pay around 4.5 per cent more.
• Typical large business customers on tariffs 44, 45 or 46 are expected to pay around 9.9 to 13.6 per cent more.

“The expected increase in draft prices is mainly due to a projected increase in energy costs, following several years of falling energy costs, which were a driver of price decreases for each of the last three years,” said QCA Deputy Chair Madeline Brennan QC.

An accompanying consultant report from ACIL Allen notes:

“Unlike the previous four determinations in which there was a clear decline in contract prices, the market is now expecting an increase in price outcomes as the amount of utility scale renewable investment coming on-line slows between 2021-22 and 2022-23 (compared with recent years), coupled with the continued unavailability of Callide C Unit 4 for at least half of 2022-23, and stronger coal and gas prices, and the closure of Liddell in New South Wales.”

The unavailability of Callide C Unit 4 is the result of a fire/explosion in May last year that had some major knock-on effects, both immediate and ongoing. As for large-scale renewable energy investment generally in Australia, the Clean Energy Council has previously identified grid connection and network constraints among the challenges, alongside “ongoing unpredictable and unhelpful government policy interventions and market reforms.”

The QCA is encouraging feedback on the draft determination before the closing date of 7 April 2022. The final determination is expected by the end of May, and new pricing will apply from 1 July 2022.

Going Solar In Regional Queensland

Taking some of the sting out of the increase for households will be another “asset ownership dividend” from the Queensland Government – a $50 rebate in 2022. But that’s $50 better off in a household’s pocket rather than going to an electricity retailer. Comparing electricity retailers won’t bring much joy as while there is some token competition in regional Queensland, it’s all much of a muchness.

Regardless of whether electricity prices are headed up, down or staying the same, home solar power will remain a solid investment. The upcoming increases make installing solar panels even more compelling for households and small businesses, and SolarQuotes has a comprehensive guide to going solar in regional Queensland well worth checking out.

For larger businesses in regional QLD, solar power can also be a slam-dunk investment decision – see SQ’s commercial solar guide for further information.

Original Source: https://www.solarquotes.com.au/blog/regional-queensland-electricity-mb2377/