Queensland’s government insists it won’t try to drive up the amount of revenue state-owned power firms can collect before it leases them to the private sector.
Queensland’s government insists it’s not trying to increase the capped revenue of state power distributors before it leases them.
The Newman government wants to raise $37 billion through the long-term lease of some public assets including power generators, transmitters and distributors.
It will spend $25 billion on paying down state debt, $8.6 billion on new infrastructure and $3.4 billion on offsetting the cost of Labor’s Solar Bonus Scheme until 2028.
The plan will go ahead if the government wins the next election.
The amount of revenue that power distributors can collect is set by the Australian Energy Regulator (AER) every five years.
Queensland’s government is due to make a submission to the AER about state distributors at the end of October.
But Treasurer Tim Nicholls insists the submission will spruik the government’s efforts to reduce capital and operating expenditure of distributors by $1.7 billion.
He says that’s because the government isn’t trying to increase the capped revenue of power distributors so it can get a better lease price on them.
“The AER as the independent regulator investigates these things, they don’t just stand there and get an application and say ok tick and flick,” he told reporters.
Mr Nicholls said while submissions were due by the end of the month, there would be no draft determination due until towards the middle of next year.
“So this is a lengthy process and our view has always been that we are working costs to consumers,” he added.