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14% power price hike proposed for Qld

2nd December 2008

flickr.com/delgaudm
QUEENSLANDERS could pay an extra 14 per cent for electricity if a proposal by the state's competition watchdog is accepted.

The Queensland Competition Authority (QCA) on Tuesday released its recommended price cap, or benchmark retail cost index, which is used to set power prices each year.

The QCA said the price cap should rise by 13.63 per cent from July 2009.

It said the rise was needed because of the rising price of fuel and capital costs and an increase in transmission and distribution costs.

Queensland Energy Minister Geoff Wilson said he would now examine the proposal.

"I recognise that it's a blow for Queenslanders struggling on tight budgets," Mr Wilson said.

"I've directed my department to closely scrutinise that decision to ensure that that proposal by the Queensland Competition Authority provides nothing other than for the genuine increases in prices for electricity over the last 12 months."
© AAP

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