Queensland power prices are set to rise more than expected at the end of this month. The Queensland Competition Authority (QCA) has announced a 22.6% increase in power prices as opposed to the 21.4% predicted in their draft determination report released in February. This equates to an increase of, on average, $268 a year.
The QCA has blamed the increase mainly on network costs and Federal Government decisions. It says that the Newman Governments decision to freeze prices last year has greatly increased the spike we now have to endure. The electricity charges now need to catch up to the cost of producing electricity and make up for the 12 months where the price was frozen. In addition to this, the carbon tax also added to the increase. Businesses are also set to face a price hike, although not as high as residential customers. Small businesses electricity price increase will be around 17% or $281 per year.
QCA Chairman Malcolm Roberts said they do realise how these increases will stretch some families and businesses budgets. “As I have said, this will not be a popular decision,” he said, “But we believe it is the right decision.”
Lower off-peak tariffs, such as tariff 31 and 33, will also face increase after July 1st this year.
The QCA’s Final Determination has taken the blame off solar power systems. After being attacked by big energy companies and Energy Minister, Mark McArdle, The QCA has not recommended increased special tariffs for solar power owners. It believes that other reason, such as ‘poles and wiring’ and government policy, are more to blame for electricity price increase than solar power systems.
With increasing political scandals and what seems like forever increasing electricity prices, there has never been a better time to look into installing a solar power system. Rooftop solar systems will produce clean, green energy for use in your home and you may even be able to sell excess power produced back to you electricity retailer at a premium.
As reported late last month, commercial solar power systems or systems over 10kW’s are also a financially viable option these days. With electricity prices soaring, it is becoming cheaper to install a solar power system than draw electricity from the grid. With payback periods of 4 – 7 years without any government subsidies or assistance, a commercial solar power system will continue to generate electricity for a further 20 years free from the sun.
Click here to see the QCA’s Fact Sheet for the 2013 – 14 Electricity Prices