In the recent Queensland budget announcement, much attention has been drawn to the proposed electricity rebate aimed at alleviating the burden of rising energy costs on households. While such a rebate may provide immediate relief to consumers, it raises an important question: Is it truly the solution to the underlying problem, or should the focus be on addressing the root causes of escalating prices?
One crucial aspect to consider is that many of the assets responsible for generating electricity in Queensland remain under state ownership. This control should theoretically allow for better cost management and the ability to reduce prices for consumers. However, it is disconcerting that a projected 20 per cent increase in energy prices looms on the horizon. With the state retaining ownership, one would expect better cost control and the ability to prevent such substantial price hikes.
Queensland state-owned energy companies delivered more than $5 billion in dividends to the coffers of the Labor government from 2017 to 2021, while electricity rebates worth $1.1 billion had delivered a total of $575 to each household from 2017 to 2022. In 2022, no dividends were delivered as the companies re-invested in themselves. The assets are big money-makers for the state government, at the cost of Queensland consumers.
Moreover, there is a worldwide debate surrounding the impact of renewable energy on electricity prices. This paradox raises concerns about the potential consequences of Queensland's increasing reliance on renewables.
It is essential that the Queensland government outlines a comprehensive plan to ensure that electricity prices remain affordable in the face of renewable energy expansion rather than a Band-Aid approach with a rebate.
This plan should address the complexities of electricity markets, incorporate technological solutions like grid-scale energy storage, and consider the potential impacts on transmission infrastructure costs. By carefully navigating these challenges, Queensland can strike a balance between renewable energy adoption and price control, safeguarding the interests of consumers and the environment.
Amanda
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