Power price rise will hit struggling dairy farmers hard

A STAGGERING 22.6% rise in electricity prices could cripple our struggling dairy industry – and add more cost of living pain to battling Gladstone families.

A STAGGERING 22.6% rise in electricity prices could cripple our struggling dairy industry - and add more cost of living pain to battling Gladstone families.

Queensland Dairyfarmers' Organisation spokesman Brad Pfeffer believes the price hike, coupled with the after-effects of Cyclone Oswald, could send farmers broke.

"It's already really difficult for them (dairy farmers) after Cyclone Oswald and the ongoing supermarket milk price war," Mr Pfeffer said.

"Unfortunately we're seeing on a weekly basis farms being lost and farmers exiting the industry.

"It's no secret the price war is crippling them and this doesn't help their cause."

The need to cover costs associated with the solar rebate has accounted for some portion of the increase, but Mr Pfeffer said that did not fully explain the astronomical price rise.

"The QCA (Queensland Competition Authority) does explain some of the price increase, but the Queensland Farmers' Federation have said they just want realistic pricing for farmers," he said.

"It is a variable business by nature and we would like to see a decent differential between on and off peak charges."

The latest rise will hit families hard, with an average four-person household's electricity bill expected to rise by about $343 per year.

Unfortunately we're seeing on a weekly basis farms being lost and farmers exiting the industry.

This has led to further interest in solar power as an option for households looking to avoid the skyrocketing cost of their electricity.

Despite the solar rebate being slashed from 44 cents per kilowatt down to 8 cents per kilowatt, people are continuing to look to solar in a bid to reduce their electricity costs.

Dave MacGregor, of Gladstone's MacGregor Electrical and Solar, said he had seen a marked increase in households inquiring about solar power as a cost-cutting option.

"More and more people are seeing the incentive that solar power offers," Mr MacGregor said.

"Obviously numbers have dropped a bit since the rebate was cut, but people can see the benefits solar power holds."

While on a smaller-scale solar could provide a solution to home owners, this is not the case for bigger businesses and producers.

Meanwhile, dairy farmers can't do without electricity - and Mr Pfeffer warned that it was the public that would have to wear the inevitable price rise.

"So much of electricity costs for farmers are fixed. They're locked-in," he said.

"It's a big risk to consumers as well - less farmers means less options for the public."

Originally published as Power price rise will hit struggling dairy farmers hard