CHAMBER OF COMMERCE AND INDUSTRY QUEENSLAND (CCIQ) ABOUT CCIQ - - PowerPoint PPT Presentation

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CHAMBER OF COMMERCE AND INDUSTRY QUEENSLAND (CCIQ) ABOUT CCIQ - - PowerPoint PPT Presentation

Mar 05, 2023 359 likes •447 views

AER ENERGY QUEENSLAND DETERMINATION 2020 2025 CHAMBER OF COMMERCE AND INDUSTRY QUEENSLAND (CCIQ) ABOUT CCIQ CCIQ is Queenslands peak industry representative organisation for small and medium businesses We represent over

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SLIDE 1

AER ENERGY QUEENSLAND DETERMINATION 2020 – 2025

CHAMBER OF COMMERCE AND INDUSTRY QUEENSLAND (CCIQ)

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SLIDE 2

ABOUT CCIQ

  • CCIQ is Queensland’s peak industry

representative organisation for small and medium businesses

  • We represent over 448,000 Queensland small

and medium businesses (SMEs)

  • SMEs constitute 97.7% of Queensland

businesses

  • SMEs employ 66% of Queenslanders in the

private sector

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SLIDE 3

POWER PRICES: CCIQ MEMBER VIEWS

  • CCIQ conducts the Suncorp Pulse Survey of

Business Conditions (Pulse Survey) once-a- quarter

  • The Pulse Survey is the largest survey of

Queensland businesses

  • Electricity prices consistently cited among

biggest pain points for business

  • It has been the No.1 pain point for

businesses in several of our quarterly surveys

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SLIDE 4

2020 – 2025 DRAFT DECISION

  • CCIQ acknowledges the AER Draft Decision

(October 2019) moderating Maximum Allowable Revenue (MAR) for:

  • Ergon Energy
  • Leading to $82/year ($6.80/month) savings

for average small business customers

  • Energex
  • Leading to $82/year ($6.80/month) savings

for average small business customers

  • Savings are always welcome but, in this case, are

very limited in scale

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SLIDE 5

SUGGESTIONS

  • Continued insistence on evidence and quantitative

cost-benefit analysis to support capex forecast

  • Interrogate this when delivered by Ergon and

Energex

  • Continued push for efficient opex as a result of

merger leading to formation of EQ

  • These measures may add to the $6.80/month

savings predicted for small businesses under current draft decision

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SLIDE 6

BIGGEST NETWORK COST DRIVERS

  • Inflated RAB
  • Financing costs
  • Tax Allowance
  • Negative incentives
  • MAR allows networks to raise prices to meet

MAR in the event of lower-than-predicted power demand

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SLIDE 7

FINAL QUESTION

  • Given widespread agreement on
  • Over-investment in network infrastructure
  • Networks constituting biggest proportion of power bills
  • Massive negative impact on business and consumers
  • Urgent need to reduce power prices
  • The proposed savings of $6.80/month are disappointing
  • Are we really tackling the biggest cost drivers? If not, why?