Queensland farmers face further electricity price uncertainty after the Australian Energy Regulator (AER) rejected Energy Queensland’s Tariff Structure Statements for Ergon and Energex and revised both distribution networks’ regulatory proposals down for the 2020-25 period.
In its Draft Determinations of the Energex and Ergon Energy Regulatory Proposals, the AER was not convinced with the amount of money they were applying to recover from consumers to operate their networks and proposed a reduced figure.
Whilst the AER was not satisfied that the Tariff Structure Statements complied with the distribution pricing principles in the National Electricity Rules, it conceded that parts of the statements contributed to compliance with the principles and to the achievement of the network pricing objective.
With the AER’s final decision not published until 30 April 2020 and retail tariffs still to be finalised, Queensland Farmers’ Federation President Stuart Armitage said farmers would have a matter of months to assess the new retail tariffs and work out what was best for their business and if any structural change or new equipment was needed.
“While QFF welcomes the AER’s revised regulatory proposal figures, this is yet another frustration for farmers as the process has continually caused anguish and failed to provide clarity on future tariffs and the significant bill increases some farmers will face when moving to standard business demand-based tariffs.”
“QFF is continuing to work with Energy Queensland to ensure a positive outcome for farmers including incorporating knowledge from tariff trials, while impressing the need for a suite of suitable tariffs.”
“If action is not taken, unsustainable electricity price increases and lagging productivity will result in more expensive food, fibre and foliage and a further loss of international competitiveness for Queensland’s farmers.”