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Power retailer Queensland Electricity has defended price hikes of up to 24 per cent, saying it had held off on the rise since Energex increased its charges in July 2008.

The private company is also blaming the current economic climate for being behind their decision to slash all customer discounts and increase kilowatts/hour energy rates by 13.6 per cent.

About 55,000 customers across the state will be affected by the changes and the move could add $200 a year to electricity bills.

Queensland Electricity managing director Simon Draper said energy supplier Energex increased rates last July by 12 per cent.

He said this had resulted in a fixed daily charge increase of three cents per customer, as well as a kilowatts/hour energy rates increase of 13.6 per cent.

Mr Draper said the private company was no longer able to provide discounts for their customers, which is why some increases were as large as 24 per cent – a move being investigated by the state’s energy ombudsman.

“We didn’t put them up and have tried to stay competitive with everyone else for as long as we could,” Mr Draper said.

“But effectively, we’re just a retailer. Most of the money we get goes to suppliers, we don’t keep much of it.”

While Mr Draper said he expected a fallout from customers, he warned customers not to be too hasty in their decision.

“Customers will find that most retailers will increase their prices throughout the year,” he said.

“We’re getting in a little bit earlier, which is why we’re getting all the attention.”

The state government originally claimed Queensland’s electricity consumers would not pay more after the market was opened to full retail competition from July 1, 2007.

Energy Minister Geoff Wilson called on Queensland Electricity to abandon their “outrageous” price hike as he referred the matter to the energy ombudsman to investigate.

“But the harshest penalty for businesses is for them to lose customers,” Mr Wilson said.

While changing electricity supplier may attract an exit fee, Premier Anna Bligh echoed calls for customers to exercise their options.

“Those electricity users who are customers of this company, I’d recommend they go and look for another provider,” Ms Bligh said.

LNP energy spokesman Jeff Seeney said the Bligh government’s failure to manage the deregulation of electricity retailing in Queensland had come home to roost.

“(Consumers) have been left to pay while the minister runs around saying he’ll talk to the energy ombudsman,” Mr Seeney said.

With thanks – Source:  http://www.businessspectator.com.au/bs.nsf/Article/Qld-consumers-face-power-bill-hike-NJ6DT