Population growth, an ever-increasing demand for energy and the need to expand and upgrade Queensland's electricity infrastructure are among the many factors that impact on the cost of electricity.
How electricity costs affect prices
The price you pay for electricity is made up of:
- generation costs - creating electricity at a power station
- transmission costs - building and maintaining Queensland's extensive high-voltage powerline infrastructure
- distribution costs - building and maintaining Queensland's network of poles and wires that deliver electricity to homes and businesses
- retail costs - connecting customers, billing customers and managing accounts.
- carbon costs - costs associated with the Australian Government's carbon tax and Renewable Energy Target.
Carbon costs will be clearly indicated on your bill. Find out more about the carbon price and small business.
You can compare electricity and gas prices using the Queensland Competition Authority (QCA) price comparator.
The following costs impact on electricity prices.
Queensland's electricity distributors Energex and Ergon Energy will spend about $15.6 billion from 2010 to 2015 on electricity network infrastructure, maintenance and operations to cope with increased electricity demand. We all pay a portion of this cost through our electricity bill. This investment in our electricity system increases the transmission and distribution components of the regulated tariff.
Increasing costs of coal, gas and other fuels used to produce electricity has raised the generation cost in the regulated tariff. As fuel costs increase, they drive up the regulated tariff and the price we pay for electricity.
Current regulated electricity prices
Current electricity prices for business and residential customers will apply until 30 June 2014.
Regulated electricity prices
The Queensland Government has delegated responsibility for determining regulated retail electricity prices from 2013-14 to 2015-16 to the Queensland Competition Authority (QCA). For 2013-14, the QCA released the final regulated retail electricity prices on 31 May 2013. Draft prices for 2014-15 will be released by QCA by 13 December 2013, and final prices no later than 31 May 2014.
The costs involved in supplying electricity to Queenslanders in regional and remote areas is much greater than for those in the south-east corner of the state. This is due to the high costs of transporting electricity over long distances and there are fewer people in remote and regional Queensland to share the costs of the towers, poles and wires that deliver them electricity.
The Queensland Government supports regional and rural Queenslanders by subsidising them for the additional costs involved in supplying electricity outside South East Queensland, through payments to Ergon Energy. This subsidy is called the Community Service Obligation payment.
- Last reviewed
- November 6, 2013