Qld confident energy plan is on track

Christine Flatley

Queensland Energy Minister Anthony Lynham says he is confident the sunshine state is already meeting most recommendations set out in the national competition watchdog's new energy report.

The state government will carefully consider the Australian Competition and Consumer Commission report released on Wednesday which says the electricity sector needs reform to bring down prices and restore confidence.

"We're putting more supply onto the network, the retail competition is strongest here in Queensland," Mr Lynham told ABC radio.

"It seems to be a tick that we are doing things right, but there's always more that we can do."

The ACCC has recommended governments effectively underwrite the construction of new dispatchable power sources -- either baseload coal or gas -- by guaranteeing long-term contracts for large industrial and commercial users.

State governments also needed to do more to bring down costs, the report said, according to The Australian.

Queensland's power plan has become a political football between the major parties, with the Liberal National Party claiming the Labor government is ripping off customers by pocketing huge profits through power sector dividends.

The LNP wants to split the state's power generators into smaller companies to reduce their market power which it says will help reduce household charges.

But Labor claims this would lead to a rise in administration costs and increase power bills.

The government is working towards a target of 50 per cent renewable energy sources by 2030, while LNP has thrown its weight behind coal as a long-term energy option.

Conservative party members passed a resolution last week calling on the federal government to support building more coal-fired power stations in Queensland.