QLD will have a state election on 25 November 2017 with one of the issues being cost of energy. Unlike other states, QLD does not have supply concerns which makes energy policy a far simpler matter relative to states like SA or VIC. The Labor Party, is committed to lowering costs as well as reducing emissions whereas the Liberal National Party is willing to forego state based emission targets and focus on reducing energy costs.
Edge have pulled out the specific energy commitments made by the major parties below.
If Annastacia Palaszczuk is elected, she has committed to the following initiatives:
- Create a third publicly owned power generation company, “Clean Co”, with a mandate to deliver 1,000 MW of new renewable energy projects by 2025
- At least 50% renewable energy target by 2030
- Provide a $50 million commitment to support a solar thermal power station
If Tim Nicholls is elected, he has committed to the following initiatives:
- Split CS Energy and Stanwell back into three companies to increase competition in the electricity wholesale market
- Remove state based subsidies for renewable energy
- Build, with the private sector, a high-efficiency, low emissions coal-fired power station in North QLD
- Write down the regulated asset base of Energy Queensland by $2 billion to lower distribution costs
- Scrap the state based 50% renewable 2030 target
The divergence of policies from the two major parties is causing confusion in the short term. Longer term, it is likely that both parties will invest sufficient funds to lower the cost of energy for consumers. Both parties are proposing to introduce a third generating company which is highly likely to drive down wholesale prices through increased competition.
The race to leadership is close, the bookies have the ALP just in front.
Current as at 9.50am 14/11/2017
To find out more about the potential impacts the QLD election may have on your energy spend, please contact Edge on (07) 3232 1115 or speak with your Edge Portfolio Manager directly.