Queensland government to cancel Origin Energy contracts

The Queensland government has announced it will be cutting ties with Origin Energy in protest of recent unjustified increases to electricity prices

"Make no mistake, this government is very firm in its resolution to deliver cost of living decreases to the people of this state and will take the action we need to show our resolve," energy minister Mark McArdle told ABC Radio this morning (June 2).

"It sends a clear statement that the government is less than impressed with what has taken place and the government will not sit idly by and allow the situation to continue."

More than 2,500 contracts will be cancelled, potentially costing the electricity supplier $26.7 million.

The decision comes in retaliation to Origin's announcement that it would be doubling daily service fees to customers as well as raising tariffs.

Premier Campbell Newman has also announced that his own family would be switching provider, after learning that his average yearly electricity bill would be increasing by upwards of $400.

Mr Newman has encouraged south-east Queensland residents to shop around for a better option, issuing them with a list of 11 other providers to consider.

The premier also downplayed the impact of the carbon tax as a reason for the price hikes.

"They're trying to use that as an excuse, while consumers are confused, to actually put up prices more than what the carbon tax actually justifies," said Newman.

Posted by Charlie Moore