A new law has passed parliament that will result in the guaranteed 8c solar feed-in tariff to become obsolete by the end of June 2014. Set to affect almost 40,000 householders, the new law will be introduced in a bid to slash power bills for the majority of Queenslanders. From July 1, home owners using solar power will no longer be able to rely on the government’s feed-in tariffs; instead, they will be expected to negotiate with retailers in the absence of a regulated rate. The householders who secured the 44c feed-in tariff will not be affected by the new laws.
Passed with great success in NSW, Queensland introduces tariff laws set to minimise energy costs
Following the NSW solar feed-in tariff laws instigated more than three years ago, the new law is predicted to place downwards pressure on electricity prices across Queensland as well as maintain the popularity of solar power systems. This will be done largely by ensuring feed-in tariffs are not cross-subsidised by consumers, which would have cost an additional $110 million over six years. Having seen some success in NSW, where some companies are benefiting from higher feed-in tariffs from retailers, there is some potential for the new laws to work to the householder’s benefit.
As it stands, Regional Queensland householders will not be affected by these changes in legislation and solar power feed-in tariffs will remain at 8c per kWh.
The war against energy retailers for more cost-effective solutions continues across South East Queensland
Speaking directly to Parliament, Energy Minister Mark McArdle said the feed-in tariff changes will “make the arrangement far more sustainable over the long term”. In an additional attempt to further reduce energy bills for the majority of Queenslanders, Energy Minister Mark McArdle also introduced changes to deregulate the energy market across South East Queensland to increase competition to “challenge retailers to offer better prices and a greater range of products and services”. In the immediate future, the Queensland Competition Authority will set a tariff rate for Ergon Energy customers due to the limited competition outside South East Queensland. Laws concerning the removal of retail price regulation in South East Queensland are yet to be passed.
Electrical Trades Union actively raise their voice against the changes
While the Opposition will not oppose the bill, Electrical Trades Union state organiser Stuart Traill has voiced his concerns regarding the new laws, adding that the 40,000 householders will have little bargaining power with large energy corporations. Traill also said the plan was very ill-considered, as the returns would be miniscule when compared to the amount that could have been saved if the 44 cent feed-in tariff had been reformed.
Premier Campbell Newman has addressed the new laws, saying that they are used as part of a strategy to lower energy costs state-wide. “We are doing everything we can to get [power prices] to level out and to get people onto new meters that allow them to make smarter choices about how they use electricity,” he added.
Solar power is still going strong in minimising energy bills and generating returns for many householders across NSW and QLD. To view further information about developments across the solar power industry and how it may affect you, visit Australian Solar Quotes.
