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WILD CONDITIONS FOR THE
SUNSHINE STATE
I
t sounds like a great idea: the
Queensland Government is embracing
renewables while at the same time
making a concerted effort to reign in
the spiralling cost of power. For hippies
and non-hippies alike this is great news;
the announcement seemingly addresses
environmental concerns as well as the hip
pocket of consumers.
Sadly, an addendum to the plan carries
a heavy cost for electrical contractors.
On 1 July 2016, the Queensland
Government announced the formation
of Energy Queensland, “a single entity
which unites customers from the Torres
Strait to Tweed Heads through the
merger of Ergon Energy and Energex”.
“This is more than simply bringing
organisations together – today we
establish the means of ensuring that
the electricity grid that underpins our
economy will remain at the core of how
customers choose to use electricity,”
Energy Minister Mark Bailey, said at
the opening of the new entity’s
Townsville headquarters.
That sounds great, but where things
get a bit problematic for contractors is in
the creation of a complementary ‘energy
services business’, which the Government
says will “initially focus on providing
access to renewables and storage through
the grid for a broader range of customers;
using renewable energy supply options
to reduce expensive diesel costs in
remote communities; and, options to
enable Queenslanders to take control of
their electricity needs through tools and
systems including smart meters.”
In simple terms, the Queensland
Government is planning to start its own
electrical contracting firm to compete
with mum-and-dad operators, many of
whom are based in rural areas where
work is already difficult to source.
The move has caught the ire of both
industry associations, the National
Electrical and Communications
Association (NECA) and Master
Electricians Australia (MEA).
MEA chief executive Malcolm Richards
says the Queensland State Government
is clearly planning to take work away
from small contractor outfits.
“This is the start of what we believe
will be a very tough period for mum-
and-dad electrical businesses in
Queensland,” Malcolm says.
“This is particularly true in regional
areas, which the State Government has
specifically nominated as a key target
market for this taxpayer-funded giant.
“And sadly, we’re already seeing
electrical businesses adjusting for the
future, with a number of businesses that
we are aware of laying off staff.
“This is like the Government paying
Coles and Woolworths to set up across the
street from the local corner store.”
Malcolm says emerging technologies
are the bread and butter work for all
electricians, whether they are based in
the regions or in the city.
“There’s already an army of
innovative and enthusiastic small
businesses across regional areas rolling
out a range of new, green technology.
“The Government hasn’t outlined
any plans to grow the size of the electrical
contracting sector and will therefore
only be taking work that is currently
performed by private businesses.
“In most cases, these are small
businesses whose owners have spent
years of investment and hard work
to carve out a position in a very
competitive market.
“Now their hard work – and the jobs
of their apprentices and employees –
are being put at risk.”
The executive director of NECA’s
THE QUEENSLAND GOVERNMENT’S
PLAN TO START AN ELECTRICAL
CONTRACTING FIRM HAS BEEN
METWITHWIDESPREAD CRITICISM
FROM SPARKIES UP NORTH.
PAUL
SKELTON
REPORTS.
MARKET UPDATE
E L EC TR I C AL CONNEC T I ON
SUMME R 20 1 6