Electricity bill an 'outrage': Newman
A furious premier Campbell Newman vows to refer Origin to the ACCC and encourages Queenslanders to change electricity suppliers after receiving a notice saying some of his charges will go up by 125%.
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Premier Campbell Newman has urged Queenslanders to shun Origin Energy over the company's steep power price rises, flagging potential consumer watchdog action and a campaign involving Liberal National Party MPs.
Mr Newman, who went to the election promising to save householders money on their power bills, also flagged potential reforms to ban power contract exit fees as part of today's strongly worded attack on Origin Energy's “unjustifiable” price increases.
The Newman government froze standard residential tariff 11 at current levels for the next financial year, offering $60 million in funds to ensure pole and wire costs did not increase in the next 12 months, arguing the only increase should be a result of the carbon tax.
Premier Campbell Newman says his family will switch from Origin Energy. Photo: Harrison Saragossi
It is understood the Orgin price hikes at the centre of today's brawl apply to customers who have signed market contracts with specific terms and conditions - like a mobile phone contract - rather than those paying the regulated price.
An Origin spokesman confirmed that only customers on market contracts, including the company's Daily Saver and Two Months Free Usage products, would be affected by the increase.
The spokesman said that equated to "less than half our customers".
Mr Newman said his family home was connected with Origin but, having received a letter from the company last night, he would be switching his supplier, adding he “became crosser and crosser and crosser” as he read the correspondence.
Mr Newman said his family's tariff 11 portion of the bill was projected to go up by about 13 per cent, a service charge would rise by 125 per cent, and the tariff 33 component linked to pool pump use would rise by 49 per cent.
“These increases are simply not justifiable; they are totally unacceptable and I have grave concerns about the contents of this letter,” he said.
Mr Newman urged Queenslanders to shop around and send Origin Energy a message, adding that LNP MPs would be part of a “local campaign in each electorate” urging people to connect with another company.
MPs would have information packs to help customers move away from Origin, while the government would also consider asking Federal Treasurer Wayne Swan to refer the company to the Australian Competition and Consumer Commission “for false and misleading conduct”.
Mr Newman said Mr Swan had banned bank exit fees and the Newman government would look at making power contract break fees illegal.
“The Newman family will be shopping around. We're not just going to lie down and cop these increases,” he said.
“Frankly they [Origin] need to have a long hard look at themselves.”
The executive general manager of corporate affairs for Origin, Phil Craig, said the costs of delivering energy were increasing and network costs "now represent up to half of a typical customer's bill".
Mr Craig blamed federal and state government environmental schemes for the increases, including the carbon pricing mechanism.
“Origin structures prices to reflect the actual costs of supplying energy to customers, including the networks, the introduction of the carbon price and the wholesale cost of energy,” Mr Craig said.
Mr Craig said Origin bills would include a message which estimated the impact of the carbon price on its electricity prices, from July 1.
"All energy retailers are facing these cost pressures and we are already seeing some companies announce similar price increases," he said.
"Origin has moved first to announce price increases, in an effort to be transparent and provide certainty for our customers."
Mr Craig urged concerned customers to call Origin for more information.
A spokesman for the Queensland Competition Authority indicated the power price rises, as reported in today's Courier-Mail newspaper, “obviously related to Origin Energy market contracts and do not apply to any customers who are on notified prices with Origin”.
The current tariff 11 (the electricity tariff used for domestic usage), is set at 78 cents a day plus a variable charge of 20.1 cents a kilowatt hour.
A notified price is the regulated tariff which has been set and gazetted by the government.
Market contracts apply to those who have signed a deal with their energy retail provider, much in the same way as telecommunication companies.
The QCA determination of the rise in customer bills was set earlier this month, at 10.6 per cent for customers who use 5,370 kilowatts annually, which is deemed the “simple average”.
The majority of Queensland customers use between 2500 kilowatts and 5000 kilowatts annually.
The government did not freeze the rates for tariff 31 (the late night rate, used when demand is low) or tariff 33 (the controlled supply, often used for pool pumps).
The QCA spokesman said rises in those tariffs would depend on individual consumption.
Mr Newman's attack is not the first time a government has criticised a power company over price rises and urged customers to switch to another provider.
In 2009, Bligh government energy minister Geoff Wilson blasted Queensland Electricity’s increases for market contract customers as “outrageous and unfair” and called on people to shop around for a better deal.
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