Queensland election 2024: Electricity pledge slammed as desperate power play

Labor’s plan to set up a state-owned energy retailer reeks of “desperation politics” Opposition Leader David Crisafulli has said, while declaring power bills would be cheaper under an LNP government.

Queensland Premier Steven Miles pictured speaking at a press conference in Mackay with local candidate Belinda Hassan Picture Adam Head

Labor’s plan to set up a state-owned energy retailer reeks of “desperation politics” Opposition Leader David Crisafulli has said, while declaring power bills would be cheaper under an LNP government.

While Mr Crisafulli declined to say how much he would set aside for energy rebates, Premier Steven Miles has declared Queenslanders will pay less than the mainland average for electricity under a re-elected Labor government.

In a move to ensure cost-of-living and power prices dominate the third day of the election campaign, Mr Miles will announce an “energy price guarantee” in Rockhampton on Thursday.

Under the plan, Queenslanders would not pay higher than the national average default market offer (DMO) – the maximum an average household can be charged if they don’t shop around for a good deal.

Queensland Premier Steven Miles, Deputy Premier Cameron Dick and Mackay Labor candidate Belinda Hassan. Picture: Adam Head

It would mean households would have a safety net – covered through rebates – in a scenario where Queensland’s expected average annual bill is higher than the other mainland east coast states.

But the energy price guarantee would not have been needed for the past two years, as our DMO was ultimately lower than the combined average of NSW, Victoria, South Australia and Queensland.

The promise builds on Labor’s plan to set up a state-owned electricity retailer to undercut privately-owned rivals in the southeast and go up against the government’s own Ergon Energy in the regions.

Labor expects the interventionist plan would cut Queenslanders’ power bills by 6 per cent a year – or just over $100 for the average household. The retailer would cost a modest $1.4m to set up, according to Treasurer Cameron Dick.

But experts believe setting up a state-owned retailer will have a marginal positive impact at best, or make no difference at all in a complex and high-risk sector.

Queensland’s peak business group slammed the plan as doing little more than creating extra bureaucracy while not putting much “genuine downward pressure” on prices.

Premier Steven Miles visits a chemist during a campaign visit to Mackay. Picture: Adam Head

Griffith University Centre for Applied Energy Economics deputy director Alexandr Akimov said the new state-owned retailer could have “marginal or no impact” if not designed efficiently and with enough independence.

“Even if it is designed properly, I don’t think there will be a big change for the South East,” he said.

Associate Professor Akimov said in the regions it could encourage competition and provoke efficiency from Ergon Energy, but it would still require the government to deliver substantial subsidies.

University of Queensland economist Professor John Quiggin, who underlined he supported increased public ownership of energy assets, said the move would have a marginal positive effect.

“It’s a relatively small measure (with) a relatively small effect,” he said.

Mr Crisafulli criticised the plan as “desperation politics”, though he left his deputy Jarrod Bleijie to lather on the harshest criticism of Labor’s policy.

Thumbs on the campaign trail at Mackay’s Caneland Central shopping centre. Picture: Adam Head

“The Labor Party’s energy policy is weird, wild and desperate from a desperate Premier; Queenslanders will see through this,” Mr Bleijie said.

Mr Crisafulli meanwhile assured Queenslanders power bills would be cheaper under an LNP government through continued rebates.

The LNP has committed to lengthening the life of the Callide B power station to shore up the state’s baseload energy supply while it creates a pumped hydro plan.

Asked on Wednesday whether Queenslanders would receive rebates during the interim, Mr Crisafulli said, “of course they will”.

But the LNP leader would not reveal how much money would be put aside to subsidise electricity bills or how much it would cost to keep Callide running beyond 2028, saying those details would be revealed at a later date.

“We remain very supportive of the interim measures,” Mr Crisafulli said.

Steven Miles with his wife Kim on a morning walk in Mackay. Picture: Adam Head

Both leaders ended day 2 of the campaign in Rockhampton, arriving just over 24 hours before the pair were due to face off in the first official debate of the election.

Mr Miles’ cheaper power policy promises are made in Mackay and Rockhampton in a bid to firm up Labor’s declining grip on power in the regions.

Mackay and Rockhampton are emblematic of Labor’s weakening grip on power, with the party on track to lose both electorates they’ve held unbroken for the past 115 years and 92 years respectively.

Mr Crisafulli started day 2 of the campaign in Brisbane, where he promised to invest $30m into to help farmers partner with universities to research new methods to boost agricultural production.