Since the 1970s, Queensland residents and businesses have paid for their energy use on a “declining block” structure.
Business Tariff 20 deals with the general supply of energy to Queensland businesses, and currently levies 13.75 cents per kilowatt-hour for the first 10,000kWh per month, with the tariff falling to 12.00c/kWh for remaining energy consumption.
Under the flat structure being introduced next week, all consumption determined by Business Tariff 20 will be levied at the 13.75c/kWh rate.
Similarly, residents affected by Domestic Tariff 11 or businesses affected by Business Tariff 22 (general time-of-use) will continue to pay the higher initial rates for consumption.
Queensland energy minister John Mickel said the new tariff structure would act as a disincentive for high energy consumers, and help the State manage peak energy demand.
After a series of storm-related blackouts in early 2004, the Queensland Government appointed an independent panel to review the electricity industry.
In July 2004, the panel handed down the Report of the Independent Panel for Electricity Distribution and Service Delivery for the 21st Century, commonly referred to as the Somerville Report after its chairman, Darryl Somerville.
Mickel said the new tariff structure would help the State address some of the issues raised by the report, without negatively affecting the majority of energy consumers.
“Ninety-seven per cent of business customers on Tariff 20 and 92% of those on Tariff 22 will be unaffected by the change,” Mickel said, noting farm tariffs would not change to a ‘flat’ structure.
“Only very large consumers of electricity under these tariffs will be affected.”
