COTTON growers have reacted with frustration to today’s developments in Queensland's electricity pricing regime.
In the morning, the Queensland Competition Authority (QCA) announced changes to the regulated retail electricity pricing regime that would have seen prices increase dramatically for both consumers and business users.
Under the QCA's determination, users on Tariffs 62, 65 or 66 - which captures the majority of irrigating farmers and cotton growers in Queensland - would have seen electricity prices rise by more than 8 per cent.
However, the QCA's determination announcement was swiftly followed by a joint media release from the Treasurer and Minister for Energy, which indicated the government-owned wholesaler - Energy Queensland - had been instructed to remove the costs of the solar bonus scheme from network charges until at least 2020, a move the Government says would more than halve the increase for consumers.
Cotton Australia general manager Michael Murray said the Queensland government had said large businesses and customers on transitional tariffs, which are tariffs used by many cotton growers, would share in a reduced electricity pricing increase.
"It (Queensland government) has directed the QCA to release a new pricing regime by 16 June, which leaves irrigating cotton growers and other farmers in limbo for another two weeks before they find out exactly how much more they will have to pay for electricity," Mr Murray said.
"We appreciate the Queensland government has stepped in to take action on behalf of energy users. However, we strongly suspect that even the reduced increase will far outstrip the inflation rate.
"Let us also not forget that cotton growers and other farmers have already been subjected to consecutive electricity price increases for many years. A two-week delay to discover an inevitable price increase is not a happy story for anyone.
"What's required is a joint effort by the State and Federal Governments to solve the root cause of the issue, which is persistent increases to wholesale energy costs thanks to policies which have allowed the networks to gold-plate their infrastructure, and the actual cost of energy to run away."
"Queensland cotton growers eagerly await the QCA's revised pricing regime, just as we await a long-term solution from the State and Federal Governments. Farmers have suffered for too long - now is the time for strategic, problem-solving action."
