Power bills on the rise

Regulator recommends $53 increase for Qld households

Queensland households can expect their energy bills to go up about $53 within months, with the Sunshine State one of the only spots to cop an increase while others see costs ease.

The Australian Energy Regulator on Tuesday released its draft decision on electricity prices.

The default market offer is the maximum a customer in the southeast can be charged if they don’t shop around for better deals. A Queenslander in the southeast on the default market offer will have the second lowest energy bills of capital cities connected to the national grid.

But it is one of only two areas to cop a price increase as the regulator puts increased weight on protecting customers amid the cost-of-living crisis.

Southeast Queensland households will cop a bill increase of $53 from mid this year – for a total of $2022 – if the draft decision is made final.

This is significantly lower than the $349 increase consumers copped in the 2023/24 financial year.

Small businesses in the southeast will get a minor reprieve of $11 under the default market offer.

Australian Energy Regulator chair Clare Savage said wholesale energy markets had stabilised since the extreme peaks of 2022, but the easing had been offset by pressures seen in network prices.

Under the draft decision, it is expected price changes for all residential and small business customers on standard retail plans will be less than the rate of inflation.

“Poles and wires’ costs are a large component of retail prices, comprising around 40 per cent of the price,” Ms Savage said.

“We know that economic conditions have put pressure on many Australians and the increases in electricity prices over the last two years has made energy less affordable for many households.

“In light of this, the AER has, in this decision, placed increased weight on protecting consumers.”

Under regulation the AER is required to set a reasonable per-customer annual price, having regard to the costs of supply and enabling retailers to make a reasonable profit.

Federal Energy Minister Chris Bowen said the fall in prices was encouraging but there was still “much more to do”.

Mr Bowen refused to concede that the Labor Government would not deliver on its promise to lower power bills by $275 come 2025.