Electricity Tariff Adjustment Scheme

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

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

Obsolete electricity tariffs

Since 2012, the Queensland Competition Authority has been transitioning regional Queensland businesses on obsolete electricity tariffs.

Seven old electricity tariffs were phased out in June 2021 as they did not reflect the true cost of providing supply.

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

Eligibility

To be eligible for the Electricity Tariff Adjustment Scheme, a customer had to:

• 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 analysed the bill data of its regional farmers and businesses to identify eligible customers.

Eligible customers were contacted by Ergon Energy Retail from July 2021.

Transition rebates under the scheme

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

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

The rebate appears on eligible customers' Ergon Energy Retail bills as a 'transition rebate'.

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 are set out in a Queensland Government Gazette notice.

Also consider…

• Read about previous energy programs which helped businesses adjust to tariff changes.
• Find out how you can save money by adopting more energy efficient practices in your farming business.
• Contact your electricity retailer to discuss how you could save money by switching tariffs.