The Liberal National Party (LNP) in Queensland urged the state government on Tuesday to issue guarantee on residents that the existing price caps on energy would remain in place as the opposition party anticipates the looming electricity and gas market review in 2012.

Following the review and once state authorities have determined that a strong competition on the energy sector is in existence, the reviewing body could strongly recommend for the scrapping of the power price control by 2013.

The state government, however, gave assurance that any such recommendations would be studied carefully prior to deciding in deregulating energy prices though LNP spokesman Jeff Seeney insisted that the government could do better than pledging a review of a possible power industry deregulation.

Mr Seeney said that as far as the LNP is concerned, Queensland can be assured that the price cap would stay on its watch, stressing that "the regulated electricity price in Queensland was a great legacy of former coalition governments."

He argued that no pressing reasons to remove the caps are in existence at this time, citing at the same time that Queensland energy prices have in fact saw increases over the past three years, clearly indicating that energy competition in the state has yet to reach an effective stage.

Mr Seeney is convinced that "we will never have that sort of competition in places like Cairns, Townsville and Longreach," all the more affirming the argument that regulated price is very important in Queensland.

Also, the state government has maintained that setting aside the energy caps would entail many considerations as Natural Resources Minister Stephen Robertson asserted that the government could always exercise its option to accept or reject recommendations that lead price deregulation in the power industry.

Mr Roberson said that in consideration of the current electricity costs and the present economic situation of many Queensland residents, "we would be taking a very long and hard look at any recommendation before we made a decision."