AER decision to hit Qld's bottom line
Source: AFR, 30 April 2015
The decision by the Australian Energy Regulator to slash the approved capital works programs of Queensland's state-owned electricity companies, Energex and Ergon Energy, will result in less dividend revenue flowing into the coffers of the Palaszczuk government.
With the new Labor government already under fire this week for deferring the deregulation of electricity pricing in the south-east corner, the regulator's preliminary decision on Thursday delivered a welcome reprieve for households which are expected to receive an average $34 reduction in their bills next financial year, while small business will receive a $53 benefit.
The decision to slash Energex's expenditure on poles and wires by $1.9 billion, or 23 per cent, is expected to deliver average annual reductions of between $16 to $44 up to 2020 for the long-suffering electricity consumers in the state's south-east who have faced double-digit price increases in recent years.
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