State Government rejects power price prediction
THE State Government has slammed a new report suggesting power bills for Gladstone residents would rise $350 next year.
The McKell Institute predicted rising natural gas prices would push household costs even higher, after releasing a report of the link between gas and electricity prices.
Executive director Marianna O'Gorman said gas-fired generation plays a major role in overall energy mix and the price of electricity.
"So gas steps in when other sources are offline, as the last player to enter the market during power shortages, gas becomes the overall price setter."
Ms O'Gorman said the export demand of Australian liquefied gas is pushing prices up.
"We can assume that if gas prices rise to $14 a gigajoule... Flynn household energy bills will rise $348 in 2019," she said.
However, a spokesperson for the Minister for Energy, Dr Anthony Lynham, refuted the claims, calling them "ridiculous".
The Minister told Parliament last week despite a rise in inflation, electricity prices actually fell.
"Since the Palaszczuk Government introduced the Powering Queensland Plan in mid-2017, power prices have been on a continuing downward trend," Dr Lynham said.
According to an Ergon Energy spokesperson, residential energy prices for regional Queenslanders were cut by 1.3 per cent.
Dr Lynham also said the government remains committed to their two-year cap on electricity prices, also giving consumers further options.
"We have a $50 annual rebate," he said.
"We have interest-free loans from solar panels ... we are doing it by reinvesting dividends from publicly owned assets."