The Queensland Farmers’ Federation (QFF) has acknowledged the Australian Energy Regulator (AER) determination today that will limit the revenue that Ergon & Energex can recover annually for the next five years.
The AER released its final determination which confirmed that Ergon Energy will have to cut its costs significantly over the next five years.
QFF CEO Ruth Wade stated that while QFF remains hopeful that the AER decision will restrict the rise in costs from both Ergon and Energex, there remains a significant risk that this saving will not be sufficient to deliver the needed reductions in prices for farmers and other industry consumers.
“With this decision the AER have not gone far enough to rein in both Ergon and Energex to ensure they return to efficient operational levels during the next five years.”
“QFF has made many submissions to state and federal governments this year highlighting the impacts that increasing electricity costs are having on the productivity of irrigation enterprises.”
“With prices continually on the up farmers and primary producers have been forced to reduce irrigation of crops, defer investments in production expansion and limit investment in energy efficiency measures to reduce their energy input costs.”
“Without a change in trend over at least the next five years, farmers will continue to adopt a very cautious approach given the uncertainty and risks involved in making investments involving energy use.”
“QFF will continue to work with the State Government to deliver the AER’s self-described ‘turning point’ for Queensland electricity prices”.