The Australian Energy Regulator (AER) has recommended at least 9 per cent hike in power prices in Queensland. AER recently released a draft submitted by Energex and Ergon Energy, the two leading power distributors of the province. It maintains that power price hike is a need of the hour given to increase in cost of electricity distribution and in order to ensure better supply network for consumers. Queensland Energy Minister Stephen Robertson added that the draft is currently under review and most likely to be accepted as it is. The minister added, "Nobody likes to see prices rise. But we must ensure a reliable electricity supply continues to meet the demands of an increasingly energy-hungry community, in which we live." Southeast Queensland reported significant increase in population in the last one year that led to around 99 per cent increase in electricity demand in the state. Now, AER is set to become the economic regulator of Ergon and Energex in
2010 and expected to come up with new price regime for distributors. In the meantime, the Queensland Competition Authority is also likely to release revised pricing and tariff structure within few days.