Energy Assets
Energy Minister Mark McArdle has
responded to the Prime Minister’s call for the State Government’s energy assets
to be sold.
This may be because the Qld Government’s
energy generation asset would be difficult to sell in the current political and
economic climate.
Asset sales proved to be quite
unpopular for the previous Qld Government.
The wholesale electricity market is over-supplied and newer gas fired assets
can produce electricity more efficiently.
Domestic gas prices are artificially low, as the coal seam gas industry
ramps up. This paradigm may change when
the liquefied natural gas industry matures and opens up to international export
markets.
Mr McArdle said, in the Executive
Summary of a submission to the Senate Select Committee on Electricity Pricing,
compiled by the Department for Resources, Energy and Tourism in conjunction
with the Department of Prime Minister and Cabinet and Treasury, the Federal
Labor Government stated that:
“The Australian Government has a clear
path for better-functioning energy markets through the progression of a set of
critical reform issues. These include: … privatising government-owned energy
assets – continued government ownership of energy businesses is impeding
greater competition and efficiency, and reduces market confidence by creating uncertainty
and risk for private sector investors.”
The Qld Department of Energy and Water
Supply is in the process of developing a 30 year energy plan.
The terms
of reference for an Inter-Departmental Committee and Independent Review
Panel for Energy have been released.
The objectives of the
Inter-Departmental Committee (IDC) on Electricity Sector Reform are to ensure:
1. Electricity in Queensland is delivered in a
cost-effective manner for consumers;
2. Queensland has a viable, sustainable and
competitive electricity industry; and
3. Electricity is delivered in a financially
sustainable manner from the Queensland Government’s perspective.
