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QUEENSLAND households are set to be hit with higher power prices at the time of day they want to use electricity the most – the morning and early evening.

The State Government has ordered the Queensland Competition Authority to investigate a new system of power pricing that ramps up costs at peak times.

Such a scheme would likely mean higher prices in the mornings and early evenings.

Air-conditioners in summer and heaters in winter would be significantly more expensive to use at these times, but the price of power could be cheaper at other times.

The Government wants consumers to feel the financial pain of their consumption decisions in a bid to reduce the multibillion-dollar cost of expanding the network to cope with peak demand times.

In a letter to the QCA, Energy Minister Stephen Robertson said the existing tariff structures had been in place for 20 years and needed reviewing.

“Strong Queensland population growth over recent years has also seen peak electricity demand increase, requiring significant investment in transmission and distribution networks,” he said.

“This indicates a need for customers to see the impact of consumption decisions.”

Opposition energy spokesman Jeff Seeney said he hoped the move was not a “stalking horse” for an unjustified price gouge and discount prices should be offered at off-peak times.

“Demand-side management can be a very desirable thing if it is done right,” he said. “But it can be just another power price rise in disguise if it’s done wrong.”

The directive was issued to the QCA on the same day the Government announced a ban on all air-conditioners with an efficiency rating below four stars from September 1. About 40 per cent of units now on the market will be illegal to sell under the new rules.

The QCA has been ordered to review whether the current tariff levels promote competition and allow real electricity costs to be fully recovered from southeast Queensland consumers.

Alternative pricing structures promoting demand-side management, such as “inclining block” and “time of use” tariffs, must also be considered.

Similar tariff schemes already exist for hot water services and pool pumps but the Government wants a system to take in all power use.

A final report, which will also have to cater for the Commonwealth’s Carbon Pollution Reduction Scheme, has been ordered by August 31 with the new tariff structure to be introduced mid next year.

Source: Courier Mail –   http://www.news.com.au/couriermail/story/0,23739,25709399-952,00.html