The Queensland Competition Authority (QCA) has released their draft determination of regulated retail electricity prices that are to take effect in regional Queensland from 1 July 2016 to 30 June 2017.

Small business customers on small business tariff 20 can expect an increase of 9.3 % in their annual bill. Customers on the seasonal time-of-use tariff 22A can expect an increase of 13.6%. Large business customers can expect increases of between 10.2% and 10.6%. The QCA are claiming that these increases have been driven primarily by higher energy costs, network costs and retail costs. Bill impacts will vary depending on each individual customer’s level and pattern of consumption. (This means that some customers will face an even larger bill than what is proposed).

Some business customers along with farmers and irrigators being supplied under transitional or obsolete tariffs are to face increases as well. Given the substantial price increases that customers on transitional and obsolete tariffs have experienced in recent years and that they are more than halfway through the transition to standard business tariffs, they have determined that customers on these tariffs will face further increases of between 10.3 % and 11.5% for the coming year.

Draft decision–transitional arrangements for 2016–17

Obsolete or transitional tariff Period to be retained Proposed 2016–17 price increase
Tariff 20 (large) –transitional 4 years 11.5%
Tariff 21–transitional 4 years 10.3%
Tariff 22 (small and large) –transitional 4 years 11.5%
Tariff 37–obsolete 4 years 11.5%
Tariff 62–transitional 4 years 10.3%
Tariff 65–transitional 4 years 10.3%
Tariff 66–transitional 4 years 10.3%

This draft determination by the QCA will have a massive impact on regional businesses and farmers alike and will affect the viability of their operations.

QCA intend to consult extensively prior to finalising their determination in May 2016. They will be holding public workshops on the draft determination in Toowoomba, Bundaberg, Townsville, Cairns and Brisbane between 1 April and 7 April 2016. Stakeholders are encouraged to attend these workshops and to make submissions on the draft determination. QCA will consider all issues raised in submissions received by the closing date in making their final determination for 2016–17.

More information on the workshops and how to make a submission is available on their website, www.qca.org.au. Submissions close on 20 April 2016 and our final determination will be published by 31 May 2016.

The QCA draft determination “Regulated retail electricity prices for 2016–17” can be found at: http://www.qca.org.au/getattachment/43f4ec4f-48c3-4d57-9f32-585ef3b2a561/2016-17-Draft-determination-of-regional-regulated.aspx

After reading this and you feel you would like more information about the proposed tariffs or how to best prepare your business to cope with the proposed price increases then feel free to contact me, Ross, on 1300 72 11 18 or email info@aquagoldconsulting.com.au