Queensland Premier Annastacia Palaszczuk said the new energy company will cut household’s power bills by $70 a year.
“Preliminary analysis indicates that CleanCo should reduce wholesale electricity prices on average by around $7 a megawatt hour,which is expected to translate to an estimated $70 per annum saving for the average Queensland household,” Ms Palaszczuk said.
The state government-owned company will be launched with an initial $250 million grant to develop 1000 megawatts of renewable energy,such as wind and solar power,and will begin trading electricity mid-next year.
Thecreation of a third generator in Queenslandwas one of the key recommendations in the Australian Competition and Consumer Commission's report into the electricity sector.
"Having two companies[in Queensland] with control of 70 per cent of the market doesn't work,"ACCC chairman Rod Sims said.
Queensland Natural Resources Minister Anthony Lynham said CleanCo would help the state achieve its goal of 50 per cent renewable generation by 2030.