Electricity Tariff Adjustment Scheme

The Electricity Tariff Adjustment Scheme will support eligible regional businesses as they move from obsolete electricity tariffs to standard business tariffs.

The Queensland Government scheme will provide eligible customers with transition rebates for up to 9 years on their electricity bills to partially offset increased bill costs.

Obsolete electricity tariffs

Old electricity tariffs are being phased out as they do not reflect the true cost of providing services. All obsolete tariffs (except tariffs 47 and 48) will cease on 30 June 2021.

Ergon Energy Retail will automatically switch customers on these tariffs to a standard business tariff on 1 July 2021.

Eligibility

To be eligible for the scheme, you must:

  • be a Queensland farm or business and be on an obsolete electricity tariff in the Ergon Energy Retail service area
  • have an annual bill increase of 5% or more from switching to a standard tariff (based on 2021-22 rates)
  • have an annual bill increase of more than $500 per year.

Identifying eligible customers

Ergon Energy Retail will analyse the existing bill data of its regional farmers and businesses to identify eligible customers.

Eligible customers will be contacted from July 2021. Until then, customers do not need to do anything.

Transition rebates under the scheme

Transition rebates are tailored to each customer, and are based on an estimate of how much their electricity bill will increase when they move from the existing obsolete electricity tariff to a business tariff.

The rebate amount will reduce gradually each year and will continue for 9 years (the duration of the scheme) or until the annual rebate total falls below $500.

Once enrolled, customers will receive a plan outlining their transition rebate amounts for the first year.

Eligible customers will receive transition rebates on their Ergon Energy Retail electricity bills from July 2021. This will appear as 'transition rebate' on their bill.

Case study

Joe operates a farm in Burdekin. Based on his electricity usage over the past 3 years, his average annual electricity bill on an obsolete tariff is $10,000 in 2020–21.

Based on his electricity usage his annual bill on a standard tariff will be $15,000.

Joe will receive rebates totalling $4,500 in the first year, $3,975 in the second year, $3,424 in the third year, and so on. Each year, the amount will decrease – for the duration of the scheme (e.g. up to 9 years; or when the annual rebate total falls below $500).

The rebates are based on an increase of 5% each year to Joe's annual electricity on an obsolete tariff in 2020–21 of $10,000.

More information

Details around eligibility requirements and how transition rebates are calculated will be published soon in the Queensland Government Gazette.

Ergon Energy Retail will contact eligible customers from July 2021 with details about the scheme.

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