By Evolution Solar Sunshine Coast

A draft announcement from the Queensland Competition Authority (QCA) says that prices could increase by as much as 21.4% from July 1st this year.

Treasurer, Tim Nicholls, says that the Government is now looking over the draft with the final decision due at the end of May 2013. He says, “What we’ve seen today in the draft determination by the Queensland Competition Authority is an unacceptably large price rise for electricity prices here in Queensland.” The rise equates to around $253 per year for the average household. Household tariffs are due to rise by 15% – 19% with businesses bearing a 12% – 16% price rise.

Mr Nicholls says the plan may be to ask generators and distributors to absorb some of the increase. Roughly half of the increase is said to be coming from network costs.

The QCA have explained that “Previously, the tariff 11 service charge has been too low and the usage charge too high. So low-use customers have not been paying enough to cover the costs of their supply and high use customers have been paying more than the cost of their supply. This is changing, so customers’ bills better reflect the costs of their electricity use. As a result, low consumption customers will see a high percentage increase in their bill as the fixed service fee is increased.”

The State Government froze the standard tariff 11 service charge for 12 months which gets lifted on the 1st July. For now, the QCA is looking for feedback on the draft with the final decision coming in at the end of May – We will keep you up to date as and when more information comes to light.

Install solar power today and start reaping the benefits before any of these price hikes start to take effect. Call or request an obligation free quote online and get your FREE solar savings report and see how having solar power will affect your power bills.