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.
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 comparator website Energy Made Easy, where customers can search and compare available product offerings.
Find out how to start electricity shopping and start saving now.
Regulated prices still apply to small business customers (those consuming less than 100MWh per year) in regional Queensland and are set annually by the Queensland Competition Authority.
Large business customers in regional Queensland can also access regulated prices. Retail prices for large customers in SEQ have been deregulated since 2012.
The current regulated electricity prices apply to customers in regional Queensland until 30 June 2017.
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.
The Queensland Government supports regional and rural Queenslanders by subsidising them for the additional costs involved in supplying electricity outside SEQ, through payments to Ergon Energy. This subsidy is called the Community Service Obligation (CSO) payment. For 2015-16, the total CSO to support regional and rural Queenslanders was $498.4 million.