Electricity prices

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.

Electricity prices

South East Queensland

Retail electricity prices in South East Queensland (SEQ) were deregulated on 1 July 2016. Electricity prices in SEQ are now determined by electricity retail providers, with customers able to choose between standard retail contracts and competitive market retail contracts.

This means that in SEQ, the Queensland Competition Authority no longer regulates retail electricity prices for small business customers (those consuming less than 100 megawatt hours (MWh) per year). Instead, retailers will publish their contract offers online and on the Australian Energy Regulator's independent price comparison website Energy Made Easy, where small business customers can search and compare available offerings.

On 1 July 2019, the Australian Government introduced the 'default market offer' which is set by the Australian Energy Regulator each year. This is a tool for ensuring that standard retail contracts are set no higher than this rate and thus allow consistency when compared with market offers which are generally at a discount but may be at a premium to a retailer’s standard retail contract.

Retail prices for large customers (those consuming 100MWh or more per year) in SEQ have been deregulated since 2012.

Find out how to start electricity shopping and start saving now.

Regional Queensland

Regulated retail electricity prices are still broadly available apply to small business customers (those using less than 100MWh per year) in regional Queensland and are set annually by the Queensland Competition Authority.

Small businesses can switch to a market retailer and choose a market retail contract where available. They can also ask their market retailer to switch them to the retailer's standard retail contract and they will then be charged the notified prices, just like Ergon Energy Retail customers. Small businesses have the option to return to Ergon Energy Retail.

Large business customers in regional Queensland can also access regulated prices provided they are, and remain, customers of Ergon Energy Retail. Once a large business switches to a market retailer, it (or any future customer at that premises) cannot return to Ergon Energy Retail.

Also, customers at the premises will not be able to access regulated prices from the market retailer unless the site is reclassified as a small business premises (usage less than 100MWh per year) by the electricity distributor, Ergon Energy Network. However, the incumbent market retailer (also known as the financially responsible market participant) is obliged to supply electricity on fair and reasonable terms to large business customers, and for small business customers on terms equivalent to the notified prices set by the Queensland Competition Authority.

If Ergon Energy Retail is prohibited from selling electricity to a premises, Ergon Energy Network can advise customers of the responsible incumbent market retailer.

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 – to build and maintain the state's network of high voltage powerline infrastructure
• distribution costs – to build and maintain the network of low-voltage poles and wires that deliver electricity to homes and businesses
• retail costs – connecting customers, billing customers and managing their accounts
• green scheme costs – costs associated with the Australian Government's Renewable Energy Target
• metering costs – providing, maintaining and reading customer meters and managing meter data.

Regional support

The Queensland Government supports regional Queenslanders, ensuring they pay similar prices for their electricity as customers in South East Queensland. This is done by subsidising additional costs involved in supplying electricity to regional Queenslanders through payments to Ergon Energy Retail. This subsidy is called the Community Service Obligation (CSO) payment. Similar arrangements are in place for Origin Energy customers in the Goondiwindi-Texas area of the Essential Energy network. For 2023–24, the Queensland Government subsidy supporting Ergon Energy Retail customers, and Origin Energy customers in the Goondiwindi–Texas area, is budgeted at about $541 million.

Charges for metering services

South East Queensland

In South East Queensland, charges for digital meters are not regulated. If your electricity retailer proposes to replace a working meter, they are legally required to inform you of any upfront charges for the installation of a digital meter and what those charges will be.

Contact your retailer for more information before the installation of a new meter.

Regional Queensland

Customers on market contracts

For regional small business customers on market contracts, charges for digital meters are not regulated. If your electricity retailer proposes to replace a working meter, they are legally required to inform you of any upfront charges for the installation of a digital meter and what those charges will be.

Contact your retailer for more information before the installation of a new meter.

Customers on regulated (notified) prices

The cost of metering is included in the notified prices and is additional to the regulated retail electricity tariffs regulated by the Queensland Competition Authority. Metering service charges are included in the daily supply charge and no longer appear as a separate charge on your electricity bill. All new or replacement meters must be an advanced digital meter (digital meter).

Digital metering (for meter types 1–4) charges for large regional customers on a standard retail contract with Ergon Energy Retail (or Origin Energy in the Goondiwindi-Texas area) are also regulated by the Queensland Competition Authority. Charges vary depending on the customer classification.

Contact your retailer for more information about metering charges.

Also consider...

• Learn more about the regulated retail electricity prices for regional Queensland businesses.
• Find out more about how you can save on electricity in SEQ.
• Search and compare electricity retailer offers through Energy Made Easy.
• Read about energy efficiency for farmers and irrigators.