By JONATHON HOWARD
MAJOR changes to Queensland’s electricity sector, which could save billions in network costs and revenues, were the centrepiece of reforms announced by the Newman Government this week.
Queensland Energy Minister Mark McArdle said the proposal, subject to consultation with employees, was to bring Ergon and Energex under a single company and would reduce duplication by improving the efficiency of network businesses.
This proposal if accepted could lead to savings of over $580 million over seven years.
“Doing this will help the government tackle soaring electricity costs by delivering significant savings that can be passed on to customers,” Mr McArdle said.
“Electricity sector reform is not something that can be delivered at the flick of a switch. The establishment of a holding company for Ergon and Energex, plus other efficiency measures identified, should start to make a difference.
“The issues identified in reviews of the sector have taken a long time to bring together.
“There is no overnight solution to getting benefits back to customers as soon as possible, but tackling network costs is seen as the most critical issue within the government’s control.”
In response to rising electricity costs, Mr McArdle said the Newman Government established an Interdepartmental Committee on Electricity Sector Reform (IDC) on 30 May, 2012, to examine cost pressures on electricity prices.
“The IDC recommendations provide a blueprint for reform that addresses the unsustainable nature of network costs, maximises the potential benefits of a competitive market, and protects vulnerable consumers as the reforms are delivered,” Mr McArdle said.
“Customers are at the centre of the government’s response, with reforms aimed at tackling costs, improving competition and providing the building blocks for a more sustainable electricity sector for customers, industry and government.”
