Shocking power prices

QUEENSLANDERS could save up to $120 a year by switching electricity retailers, but any benefit will be quickly swallowed up with the cost of an average power bill set to soar more than $800 over two years.

The number of customers in more than $2500 debt to electricity retailers has risen almost 40 per cent in the past year, leading to the energy regulator to declare a “gamechanging reform” is needed.

It comes as the federal government weighs up controversial price caps and gas reservation policies in a bid to tackle the energy price crisis, with a decision to be made by Treasurer Jim Chalmers (inset left) before the end of the year.

The Australian Energy Regulator released its annual report into electricity retail markets on Wednesday, revealing competition among the power companies in Queensland has only decreased in the past two years.

It found that as of September a consumer could save up to $120 a year by switching retailers, the difference between the best and worst deals.

An average power bill for an average-income southeast Queensland family in 2021-22 was about $1667, already up almost $200 on the previous year. In regional Queensland the average bill was $1985, an increase of $180.

But the October budget warned inflation and other pressures could see bills rise 50 per cent over two years – which would add about another $830 to bills for southeast Queensland residents and $990 for regional Queenslanders.

AER chair Clare Savage said up to half of the consumers on hardship programs with electricity retailers could be accumulating more debt as they continue to struggle to meet their ongoing power bills.

“We need to stop the cycle of debt which, for too many people, becomes insurmountable,” Ms Savage said.

She said these reforms should include earlier identification of vulnerable customers, increased protections for those facing difficulties and reducing the complexity of the energy system for consumers.

On tackling the energy crisis, Mr Chalmers has indicated there are three options – tax, cash handouts for consumers or regulation. He has all but ruled out a windfall profits tax and handouts, while strongly indicating regulation was likely.

A decision is not expected until after next week’s national cabinet, with Queensland Premier Annastacia Palaszczuk earlier warning the Commonwealth against any price cap which would impact on the returns of the stateowned coal-fire generators.