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Queensland baseload power fails to supply

Electricity consumers in Queensland would pay higher electricity prices if the state generated enough baseload electricity to power the state during times of greater demand.

Acting premier Jeff Seeney told The Australian that heat waves have seen the demand for power substantially increase.

This follows the Courier Mail's revelation that energy retailers are paying up to $12,000 per megawatt hour (MWh) as a result of increased demand, which is forcing expensive smaller generators to be used in addition to the baseload power.

This time of year would see long-term average wholesale prices at $45-$50 per MWh.

This comes after the state government decreased its baseload capacity by ten per cent when it shelved two Tarong generators.

The Electrical Trade Union told the News Limited publication that by relying on smaller generators during periods of excessive demand, higher prices are paid.

Mr Seeney argued that continuously using base generators in order to cope with the possibility of a huge increase in demand would see electricity prices rise even more.

He commented: "If we have to have an electricity industry that was based just on baseload generators that ran all the time to meet the peak of demand, consumers would pay a heck of a lot more."

Posted by Charlie Moore