GROWING criticism of increasing electricity prices in Queensland has the LNP calling for a coal-fired power station in the north and Canegrowers pushing for an "overhaul” of the Australian electricity market.

And an announcement last Wednesday that the Palaszczuk government would "slash” the expected increase of electricity prices set by the independent Queensland Competition Authority by more than half has not won over Canegrowers.

Canegrowers CEO Dan Galligan told members last week the State Government had the power to make electricity cheaper but didn't.

"Even with this government intervention, power prices are unsustainably and unnecessarily high for many Queenslanders, not least of which are our members who irrigate their crops,” Mr Galligan said.

But Treasurer Curtis Pitt described the move as a "good result for a typical small business” citing an expected 4.1% instead of the QCA's 8.2%.

Canegrowers however estimate the increase to be 5% from July 1.

"It means electricity costs for farmers who grow food and fibre have gone up

more than 130% since the pricing system changed nine years ago,” Mr Galligan

said.

Meanwhile the LNP shadow energy minister Michael Hart said an investigation commissioned by Townsville Enterprise showed a coal-fired power station in north Queensland would put strong downward pressure on electricity prices.

"Coal from the Galilee Basin could be used to fuel the new power station, which would support the development of the Galilee basin and provide cheaper electricity in the north,” Mr Hart said.