Labor pledges publicly-owned energy retailer if it wins re-election

ABC NEWS (Australia)

Queensland Premier Steven Miles has unveiled what he's calling the first stage of his plan for cheaper energy. It will see another publicly-owned power retailer established to compete with ergon in the regions. While homeowners may welcome the promise of cheaper power the industry has branded it "policy on the fly".

Transcript

00:00Pressing the flesh in Mackay, a shopping centre visit to meet the masses, some with messages

00:11of their own.

00:16An opportunity to get his boots polished and to polish his pitch.

00:23This election is all about who can tackle the cost of living and who has a plan for

00:28our state's future and our cheaper energy plan does both of those things.

00:33Stephen Miles is promising to create a new publicly owned energy retailer in Queensland

00:38if Labor is re-elected.

00:39We've listened to Queenslanders, particularly regional Queenslanders, who've said that they

00:44want a choice.

00:45Government owned entity Ergon Energy is the main retailer for regional Queensland.

00:50Labor wants to set up a second state owned body, which it says would compete against

00:55as well as with the private sector in the southeast.

00:58It would be up and running within 12 months at a cost of $1.4 million.

01:03We won't be seeking the 6% margin that other retailers can claim under the national rules.

01:11We won't be seeking that and so it's just going to put more competition in the market.

01:15Frith-Peterson runs a health and welfare business in Rockhampton.

01:19She says she's cut right back on power usage, yet her power bill hasn't changed since last

01:25year.

01:26I've only turned the aircon on recently because we're trying to keep the cost down because

01:30I guess the price per kilowatt is going up.

01:33She's a fan of any measure to reduce bills.

01:36Having a monopoly is a difficult thing because you can't make a choice.

01:42But the state's peak business body is scathing.

01:45It's policy on the fly, it has the potential to be anti-competitive, to not bring prices

01:49down and to not deal with the issue which is the cost of energy.

01:53The LNP also unconvinced.

01:55He talks about setting up competition in the retail market when he already owns, as a state

02:02government, retailing outlets.

02:05This economist says there may be a moderate price reduction in regional areas, but the

02:10broader impact is uncertain.

02:12It's a small step, we shouldn't be overstating it and expecting a lot from it, but it's one

02:15step away from the failed model we've been stuck with for the last 20 or 30 years.

02:20This is the second time Labor's announced a policy to set up publicly owned initiatives.

02:25Two months ago it announced if re-elected it would open a dozen state-owned fuel stations,

02:31a move that was criticised by some industry groups as being risky.

02:35Both leaders have this afternoon moved to Rockhampton.

02:38They'll spend the night here in the beef capital, but there's little chance of catching up for

02:43a beer.

02:44I'm busy.

02:45I've got to get ready for the debate tomorrow.

02:48Cheers to that.

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