Electricity
Reduce the cost of power to drive productivity and profitability
The irrigation tariffs (62A, 65A and 66A) have been priced out of relevance for producers having risen by 260% since 2007, which is a compound annual growth of 7.4% (compared with general inflation of 2.5% p.a. over the same period). Moving to the alternative small business tariff (T20) from its inception in 2016, would have moderated the annual increase to 5.1%, still double the general inflation rate. High water and electricity costs discourage irrigation and constrain productivity which affects regional economies, mill viability and international competitiveness. With legislated targets for the energy transition, there is real risk of unconstrained tariff growth even on the least cost pathway, since least cost does not equate to affordable given the huge amount of capital required to build the infrastructure for the renewable system.
CANEGROWERS is working hard to ensure our voices are heard amidst the multitude of stakeholders involved and that affordability is consistently demanded. The energy transition cannot come at the expense of primary industries in regional areas.
In Queensland, current tariff structures deliver huge profits to energy companies and the Queensland Government. CANEGROWERS is calling on the Government to introduce a number of measures that would reduce the exorbitant electricity costs facing farmers. These actions include:
CANEGROWERS is calling on the government to direct Energy Queensland to reduce electricity prices for agriculture by at least 40%, capped at 16c/kWh.
The government must establish regional competition between energy retailers similar to that which already exists in South East Queensland.
The government must ensure any Community Service Obligation payments are directed to Ergon Network and not Ergon Retail, as these payments give Ergon Retail an unfair advantage over any potential competitors in the electricity retail market.
The Queensland Government must support and fund the development of micro-grids that allow irrigators to use electricity generated by sugar mills. This would lower the cost on growers and lower pressure on the electricity grid.
