Electricity price rises will push more into poverty

MEDIA RELEASE

31/5/11

Any electricity price increase will inevitably push low income households further into poverty, says the Queensland Council of Social Service.

Commenting on the 6.6 per cent price rise announced today (effective July 1), QCOSS President Karyn Walsh says the Queensland Government has made a reasonable decision in preventing Energex and Ergon Energy from collecting an additional $93.2 million awarded as a result of a decision by the Australian Competition Tribunal. Without this the price increase would have been 8.31 per cent.

"While we recognise that this provides relief for one year only, we welcome anything that helps keep the price down at a time when so many disadvantaged Queenslanders are struggling," says Karyn. "But in addressing the impact of this cost over the next three years, as well as other expected electricity price rises, government assistance needs to be targeted to those who need it most."

Karyn also welcomed the Queensland Energy Management Plan released today, saying it showed the government was serious about helping vulnerable households.

"In addition to important initiatives to reduce peak energy demand (in turn reducing the need for expenditure on transmission and distribution networks), there are some great initiatives in there for disadvantaged Queenslanders," says Karyn. "These include improving energy efficiency in public housing, developing initiatives to help with energy efficiency in rental properties and setting up a social policy taskforce to look at ways to reduce the social impact of rising energy costs."

But it is not only energy costs which QCOSS finds concerning. "The Cost of Living Report we released last week shows some low income households cannot meet a basic standard of living each week as rises in the cost of essentials like electricity, transport and food outstrips the CPI and household income growth," says QCOSS Director Jill Lang.

"The report shows we need to move the debate beyond electricity to a wider group of essentials that are all rising in price faster than the items measured in the CPI. We need an external review of the concessions currently available that considers things such as eligibility, structure, administrative efficiency, access and uptake. Then the government needs to put in place a concession framework that looks at all the impacts on disadvantaged people and provides concessions in a fair and equitable manner.

"Meanwhile there is something very important that could make an enormous difference to the lives of some of those hardest hit by the new electricity price increases," says Jill. "As a priority the government should extend existing electricity concessions to all health care card holders so that people on Newstart and youth allowance without dependent children have access to this essential support."

Jill Lang 0412 164 251 , Karyn Walsh 0413 619 785

Mark Jeffery 0419 732 583 , Ian Wynne 0414 643 122

Jenny Whitworth 0417 779 819