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Electricity increases impact on pensioners and low income earners
By natasha | January 9, 2010
The Australian Pensioners’ and Superannuants’ League, Qld Inc. (APSL) have opposed Full Retail Contestability (FRC) of the distribution of electricity since its inception. In the last decade we have seen power consumption rise by 90%, this coincides with a population growth in South East Queensland of around 30% in the similar period. The effect, the government and electricity providers has said is a necessary increase in the cost of power supply.
While recognising these significant changes and the impact of population growth that has impacted on electricity demand, the guarantees and assurances that were given to Queenslanders (particularly those in the South East Corner) that the introduction of privatisation of retail suppliers would not increase the cost of power, but would provide the necessary competition to bring about a reduction in the cost of electricity has been proven to be a myth.
Now, once again consumers and in particular pensioners and other low income people will face a further hike of at least 13.83% as of July 2010.
Since the introduction of private electricity retailers, the cost of electricity over three years in Queensland has increased by over 30% and with the latest announcement consumers will be looking at nearly a 50% increase in the cost of electricity since 2007.
The impact of these significant increases is now having a serious effect within the community and last year the Energy Ombudsman’s report revealed that over 30,000 Queenslanders were disconnected from their source of electricity. This compares with less than 12,000 accounts in New South Wales.
While the APSL appreciates the power rebates that currently apply to pensioners and seniors in general, the impact of these price increases is having a serious effect on low and fixed income people as has been revealed in the numbers that have been disconnected from power.
We call upon the Minister of Mines & Energy, Mr Stephen Robertson and the Bligh Government to extend the current rebate as in some other states to those people who hold a Commonwealth Health Card. Failure to provide assistance to these groups of people is likely to see a further increase in the number of people facing disconnection and further aggravate an already increasing level of poverty in Queensland.
Over the last few days, since the price increase was announced to the public, the APSL has been inundated with phone calls from worried consumers demanding the ‘re-regulation’ and ‘government intervention’ in this out of control energy pricing mechanism.
Raymond Ferguson, APSL Policy Coordinator says that “the APSL will continue in conjunction with other consumer organisations to take whatever action is necessary to bring about a change.
Topics: Lobbying activities |
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