Rumours of the Sale of Queensland’s Electricity Generation and Transmission Quashed
Premier Peter Beattie today confirmed that Queensland’s electricity generation and transmission services would not be sold off.
Mr Beattie said he would not allow the supply of electricity to Queenslanders to be jeopardised.
“We have the fastest growing electricity market in Australia,” Mr Beattie said.
“Our Government has a key role to play in ensuring low cost and reliable generation and transmission underpins these growing domestic and business energy needs.”
Mr Beattie said the Government would retain ownership of its generator government owned corporations and their core assets.
“We have been very successful in relation to power generation in Queensland,” he said.
“So much so, that we are actually a net exporter of power to other States and Territories which are not in such a strong position.
“This has been achieved through targeted and carefully considered investment in new power plants and capacity, as and when it has been needed, to keep pace with our population growth.
“The current system of private and public investment in generation within the framework of the current GOC ownership environment works well and we won’t be changing it. The private sector has invested significantly in power generation in Queensland in recent years and we expect that to continue.”
Mr Beattie said the distribution arms of Energex and Ergon Energy would also continue to build, operate and maintain power lines and poles in Queensland.
“I want Queensland to have the safest and most reliable electricity supply network in Australia,” Mr Beattie said.
“The Somerville Report exposed some problems in relation to transmission and our Government has invested record amounts to help build a stronger system.
“I want to make sure we finish the job.”
Mr Beattie said as part of the impending introduction of full retail competition in Queensland the Government was reviewing the future of retail activities within the energy government owned corporations.
“The introduction of full retail competition in the middle of next year will give Queenslanders greater choice than they have ever had before,” Mr Beattie said.
“New retail electricity companies will be allowed to enter the domestic market and compete.
“Customers will be able to shop around for the best deal that suits their lifestyle and family and household needs.
“Even though retail is a only a small part of the business of some of our electricity GOCs it makes sense that we review them to make sure they will still be able to offer a competitive alternative.
“We need to look at whether they are structured so they are able to compete in the face of competition of large national vertically integrated companies and to ensure that the Queensland taxpayers shareholding is not exposed to unacceptable risk as a result.
“No decision has been made yet and we will continue to consider our options within the context of the impending market reforms.”
