Government to Compete Against Itself in Public Power Pledge

The Queensland state election campaign has officially kicked off, with a new promise to of a public energy retailer.

Queensland Premier Steven Miles speaks to the media during a press conference in Brisbane, Australia, on June 30, 2020. AAP Image/Glenn Hunt

The Queensland government has pledged to establish a public electricity retailer to lower petrol prices if re-elected in October, just two months after it announced plans to open several government-owned fuel stations across the state.

The move would mean the state would effectively be competing against itself with Ergon—a government-owned corporation.

Labor says the proposed company would run solely as a retailer without any of the infrastructure dealt with by Ergon, and would utilise existing state-owned poles and wires with no need to generate profits for shareholders.

Queensland Premier Steven Miles said the move would increase competition in the industry.

Labor predicts projected savings of 6 percent on power bills, with flexibility around tariffs.

“If my Labor team and I are elected this month, we will set up a new publicly-owned power retailer to provide stronger competition, greater choice, and cheaper prices for households state-wide,” Miles said.

“It’s the first part of my Cheaper Energy Plan for Queensland.

“Thanks to our massive investment in renewables, Queensland’s wholesale power prices are already lower than in other states.”

Liberal National Party (LNP) Opposition Leader David Crisafulli labelled the plan a “desperate thought bubble.”

“The solution is state-owned generators running at capacity, not more state-owned retailers running off with your money,” he said.

“And I want to give you certainty that what Queenslanders want is security when it comes to energy, a maintenance guarantee on our assets.

“What they don’t need is a distraction to take away from 10 years of bad planning that has meant that you are paying more for your electricity.”

In August, Miles announced plans to introduce 12 state-run fuel stations in areas with minimal competition to drive down fuel prices.

The proposed fuel stations would run on a “cost recovery” basis, meaning they would cover their operational costs—such as maintenance, staffing, and utilities—rather than seeking to make a profit.

It would also include fast chargers for electric vehicles.

Reforms would ban fuel stations from raising fuel prices more than once a day and would require them to release their prices a day in advance.

War of the Regions

The state election campaign officially began on Oct. 1, with the premier visiting Townsville and Opposition leader David Crisafulli touching down in Bundaberg.

The premier promised $3 million in early intervention programs to help tackle youth crime in the state’s north, an issue that analysts argue could cost Labor seats.

It is a risk Labor appears to be well aware of.

“Our community safety plan invests into programs that we know are working, and many of those programs have been piloted here in Townsville,” Miles said in Townsville.

“We can now report that in the last nine months, we’ve seen an 18 percent reduction in serious repeat offenders across the state.”

Crisafulli based his statements on shoring up trust among voters and pledging $40 million to help small businesses upgrade their security measures.