State is 'ripping off' electricity consumers: Sen Canavan

Keppel MP Brittany Lauga and Nationals Senator Matt Canavan have traded blows over the best way forward to regarding energy policy and tackling rising electricity prices.

Ms Lauga said the biggest risk to electricity prices in Queensland is the LNP's plan to privatise our electricity assets.

"Under the LNP electricity prices rose by 43% (or $436 for the average household). If we had seen another 43% increase on the 2014-15 household bill - prices would be more than $600 higher this financial year,” she said.

"The Palaszczuk Government's commitment, however, to keep power assets in public hands means the Government has had more control when it comes to putting downward pressure on electricity prices.

"Queenslanders simply cannot afford another surge in electricity prices under the LNP's plan, similar to the 43 per cent rises under the three years of the previous Newman LNP state government.”

She said Tim Nicholls and the LNP could have taken the action we have to put downward pressure on power prices, but instead they were focused on making the generators look as profitable as possible as they prepared to sell them off.

"Had those sales occurred, there would be no dividends to reinvest today, and no way for the government to intervene with what by then may have been foreign-owned generators,” Ms Lauga said.

"We have an energy policy that has stabilised prices, maintained energy security, creates jobs and acts on climate change via a transition to clean energy.

"Industry experts like Australian Industry Group and Bloomberg New Energy Finance have clearly said that electricity prices could double if a new coal fired power station is built in Queensland.”

Ms Lauga said construction of a new coal-fired base-load generation in Queensland was unnecessary as four super critical stations with a huge level of base-load capacity built since 2000 and the government focused on adopting the cheapest and most efficient forms of energy generation to lower power bills.

"Our State has one of the youngest and least emissions-intensive fleets of coal-fired generators in the nation,” she said.

"With the start of a large scale renewable industry under the Palaszczuk Government, Queensland is already getting its own new power stations all over the state, with 21st century technology producing affordable, clean energy,” she said.

"The Palaszczuk Government is 100% committed to continuing to use public ownership to keep electricity prices as low as possible, and to adopting the cheapest and most efficient forms of energy generation to lower power bills.”

Senator Matt Canavan accused Brittany Lauga of putting her "head in the sand” on the electricity price crisis facing Queensland families and businesses.

"Ms Lauga said that prices have 'stabilised' when wholesale power prices have more than doubled over the past year in Queensland,” he said.

"The Labor party has ripped off electricity consumers by ripping out dividends from state owned electricity generators. The last Queensland budget showed that its dividends have more than doubled over the past two years.

"The Queensland government owns 65 per cent of the generation capacity of Queensland. It is responsible for the electricity price crisis we face.”

Senator Canavan said the LNP knows the way to get prices down is to invest in more supply including coal fired power.

"Because the Labor party is refusing to invest in more coal fired power they must think that the electricity prices people pay don't need to come down,” he said.

"I think people are paying too much for power and we should do everything we can to get prices down, including by using our own coal instead of exporting it all overseas.”