Electrical Connection Summer 2016

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Queensland branch, Mick Logan,
has written to Queensland Premier
Annastacia Palaszczuk asking her to
reconsider the Government’s position
with the creation of Energy Queensland.
“We believe it’s the Government’s
role to create the proper regulatory and
safety settings to ensure an efficient,
market-based sector. The decision to
create Energy Queensland to compete
against mum-and-dad owned electrical
contracting businesses, while adjacent
Government departments regulate
the sector, creates not only a negative
perception of conflict but the potential
to seriously distort the market and drive
up service prices once smaller players
are driven out of business.”
Mick has significant concerns about
how far Energy Queensland will ‘creep’
into the market.
“Say there was a project to replace a
remote community’s power supply from
diesel engines and generators to solar.
Normally, electrical contractors will be
hired by the distribution entity to install
all those solar panels; now, Energy
Queensland is saying that it will do it.
“But what’s to stop them from
creeping into the domestic market? If
someone’s hot water system breaks
down, will they fix it? What about
installing solar panels on roofs?
“They have the ability to allow people
to pay for these services through their
power bill over a extended period of time.
It might even be offered under an interest
free arrangement – electrical contractors
simply won’t be able to compete.”
Mick explains that NECA is ultimately
not against the amalgamation of
Energex and Ergon.
“This merger will create efficiencies
that will hopefully reduce the cost
of power, which is very high in
Queensland,” he says.
“Our issue is the Government’s plan to
setup a contracting company to hang off
the merged entity to do the work they
traditionally gave to NECA members.
We feel this is using their market power
unfairly. Our members can’t compete
with the Government.”
NECA and MEA have both indicated
that they will continue to fight the
Queensland Government over this issue,
but the clock is ticking.
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