Restrict power price rises for off-peak tariffs, MEA urges Qld government

Master Electricians Australia (MEA) has urged the Queensland Government to restrict power price rises for off-peak energy tariffs, in order to ease pressure on the grid, reduce the amount of investment needed and cut costs to consumers.

The answer to Queensland’s power price dilemma is to restrict increases on Tariffs 31 and 33, which are used for off-peak appliances such as hot water and pool pumps, said MEA CEO Malcolm Richards.

“The Queensland Government has rightly identified the cost of investing in the network as the largest driver of power prices in the state at the moment, but this additional network capacity is really only required for a few hours each day at peak demand times,” Richards said.

“The only way to contain these costs is to reduce peak demand. If we can assist homeowners by isolating non-essential equipment during these peak times, it will reduce the need for further costly investment.

“The previous Queensland Government made it easier for consumers to switch to off-peak tariffs, by allowing them to wire a power point in their homes for pool pump use where previously off-peak appliances had to be hardwired into the home’s electrics.

“The current government can further encourage this by allowing the standard tariff (Tariff 11) to reflect true cost, but limiting or preventing increases in the off-peak Tariffs 31 and 33.

“This will act as an incentive to homeowners to switch to off-peak power, which will cut demand at peak times and reduce the need for expensive infrastructure spending.”

MEA has prepared and sent a submission in response to the Queensland Competition Authority’s (QCA’s) draft determination on power prices, urging the QCA to freeze off-peak power prices.

“Cost of living is a major issue, and nobody wants to pay higher prices for power,” Richards said.

“The QCA and the state government have a viable alternative available to them. They can use the price signal to encourage consumers to switch to off-peak power, which will in turn take the heat out of the wider market.”