Government-owned CS Energy and Alinta Energy have teamed up to provide relief to South East Queensland (SEQ) electricity consumers.
Alinta Energy and CS Energy have formed a 50/50 joint venture to supply electricity to residential and small commercial and industrial customers within the Energex distribution area.
From today, new customers will receive a 25 per cent two-year electricity discount saving customers up to $350 a year.
Under the arrangement, CS Energy will provide wholesale electricity to the joint venture and Alinta Energy will manage the retail business on behalf of the joint venture parties.
Alinta Energy executive director of retail markets Jim Galvin said the company is looking to establish a strong presence in SEQ.
“We are saying to energy consumers in SEQ; if you’re sick of increasing prices, if you feel you’ve been paying too much and if you’re tired of waiting for existing energy providers to do something about it, then now is your chance to flick them and save,” Mr Galvin said.
“With retail tariffs in Queensland increasing by between 4 per cent to 18 per cent in July this year, our market leading offer of 25 per cent off electricity usage rates for 24 months means an average residential customer, on a reference tariff from one of the major retailers, will be able to save up to $350 with Alinta Energy.”
CS Energy chief executive officer Martin Moore said he was confident the new venture would put downward pressure on retail power prices in SEQ.
“For CS Energy, this joint venture is also an opportunity to diversify our business so that we remain competitive in Australia’s rapidly changing energy market,” he said.
Premier Annastacia Palaszczuk welcomed the new offer.
“We are keen to stimulate more competition and this gives SEQ consumers an opportunity to save on their electricity bills,” she said.
“This new venture will inject new competition into the retail market and I am pleased our government-owned corporations like CS Energy are actively helping to put downward pressure on power prices to benefit consumers.
“Now is the time for all retailers to step up and see if they can match these lower price offers.”
Treasurer and Acting Energy Minister Curtis Pitt said the Queensland Government’s Powering Queensland Plan had helped deliver the lowest wholesale prices in the national electricity market by directing generators to lower prices and by investing $770 million to provide further downward pressure by removing the cost of the solar bonus scheme.
Last week, energy retailers met with Prime Minister Malcolm Turnbull to address skyrocketing power prices.
At the meeting, they agreed to write to their customers who have reached the end of a discounted plan and outline alternative offers that are available.