Power companies gave $2.3b boost to Budget bottom line

Queensland state-owned power behemoths poured an extra $2.3 billion into the Palaszczuk Government’s coffers last financial year with less than half returned to taxpayers through bill relief.

QUEENSLAND’s state-owned power behemoths poured an extra $2.3 billion into the Palaszczuk Government’s coffers last financial year with just less than half that returned to taxpayers through electricity bill relief.

The latest financial audit conducted by the state’s auditor-general has revealed that while a lid was kept on the income gleaned from the poles and wires, money made from both power generation and retail electricity sales skyrocketed in 2017/18 for the state’s power generators.

“Income from electricity retail sales increased by $229.1 million (24 per cent),” the report found.

“Wholesale electricity sales increased by $101.4 million (4 per cent) due to higher realised prices in 2017-18.”

Overall, the combined profit of the generators, CS Energy and Stanwell, increased by 14 per cent or $86.2 million.

“Returns to the state government from the generators totalled $927.3 million in 2017-18, a 44 per cent increase from the previous year,” the report found.

Power bills ‘overcharged $460 a year

Opposition Leader Deb Frecklington. Picture: AAP Image/Richard Waugh

Those returns have been growing since 2015-16 but the auditor-general has warned they might not continue to grow so large as the government pushes towards it 50 per cent renewable target.

“ … transitioning to renewable energy sources may impact the demand for electricity that is generated by coal-fired power plants, including CS Energy and Stanwell.

“Consequently, this may affect their income growth potential and the amount of returns to the state government.”

It found in total the state’s energy entities contributed $2.3 billion to the Budget bottom line with $1.1 million handed back to consumers through different forms of bill relief.

LNP Leader Deb Frecklington seized on the report to accuse Labor of using electricity bills as a “secret tax”.

“It’s a money merry-go-round that has seen record profits for government and increased prices for Queenslanders,” she said.

Anthony Lynham. Picture: AAP Image/Josh Woning

Energy Minister Anthony Lynham rejected the claim.

“The LNP lecturing anyone on electricity prices is like the Titanic’s engineers giving maritime safety advice,” he said.

The report also outlines the extent of the redundancies at Energy Queensland over the past financial year including a reduction in senior management roles from eight to six.

“Redundancies during the year saw a decrease of 216.9 FTE employees,” the report stated.

“Total termination payments amounted to $39 million.”

RENEWABLE FOCUS KEY TO SHORTEN’S PLAN

OPPOSITION Leader Bill Shorten yesterday announced a $15 billion plan to invest in renewable energy and upgrade the national poles and wires transmission network, which Labor will take to the election.

The Coalition savaged Labor’s plan, which includes a 50 per cent renewable energy target and 45 per cent emissions reduction target. It called it carbon tax 2.0 and said it was “putting a wrecking ball through the economy”.

Measures announced include $10 billion for the Clean Energy Finance Corporation to invest in renewable power and clean energy projects such as gas. A $5 billion fund will be set up to modernise and secure the power transmission grid.

Bill Shorten has announced federal Labor’s $15 billion energy plan. Picture: AAP Image/Ben Rushton

Another $100 million would be set aside for community power hubs, such as solar farms, to support apartment complexes and community wind farms.

There will be 10 of these hubs rolled out, each provided with start-up funds and legal and technical expertise, but details of how they will be chosen have not been announced.

Coal-fired power stations would also have to give at least three years’ notice before closure, while a Shorten Government would set up transition authorities to retrain workers.

Mr Shorten said Labor would keep its 50 per cent renewable energy target for 2030 and 45 per cent emissions reduction target.

“Climate change is no longer an emergency, it’s a disaster,” he said. “Our plan is right for the environment, and it’s good for business.”

But Energy Minister Angus Taylor said the targets were reckless and would be “a wrecking ball through the economy”.

“If Labor is committed to those targets, they need to explain which businesses are going out of business in Australia … they need to explain which cattle, how many cattle are going to go.”