The Queensland Competition Authority’s announcement that transitional irrigation tariffs will increase by 12.3 per cent from July 1 has left production horticulture growers, who are largely dependent on irrigation to produce their fruit, vegetable and nut crops, angry and disappointed.
Since July 1, 2007 prices have jumped a staggering 120 per cent cumulatively.
Electricity prices in this state are largely the preserve of the Queensland Government, which is patently ignoring the pleas of farmers for some action on this issue. However, in the lead up to the federal election next month, we call on all political parties to weigh into this debate since the future development and growth of production horticulture depends on stable and realistic input costs of which electricity for both irrigation and cold rooms is a major component in farm budgets.
In our election statement, Healthy Horticulture for a Healthy Australia (available www.growcom.com.au) we ask political parties to amend the rules regarding the valuation of network assets to be more reflective of the market in order to make power prices more competitive.
The reality is that the more that electricity prices increase and governments continue to pursue policies which apparently ignore them, the more likely it is that farmers will seek alternative energy sources on their farms in the desire to escape the grid. Of course, this has consequences for existing aging energy infrastructure and its maintenance and development.
The restructuring of tariffs over at least the next five years in this State to introduce higher charges for use of electricity at times of peak demand is rubbing salt into wounds. Growers use irrigation water and cold rooms at times dictated by the harvest of highly perishable commodities at their peak condition and quality. Energy efficiency programs can only go so far. The focus of growers’ attention on exiting the grid is only likely to increase unless governments pay closer attention to the realities of our industry and bring prices under control.
