Price shock: QLDers hit with even higher power bill increases than expected

Electricity prices in Queensland are set to rise by an average of $350, with a 21.5 per cent hike kicking off on July 1.

• Explained: How to get $500 power bill discount

Queenslanders are set to cop an average of a $350 power price rise within weeks – almost $30 more than forecast just two months ago.

The Australian Energy Regulator released its final decision on electricity prices on Thursday morning.

While Queenslanders were expected to receive the lowest percentage increase of any state when the AER released its draft decision in March, its final decision has pushed it up to on par or slightly higher than other states.

A Queenslander in the southeast on the default market offer, the maximum retail electricity fee, will be paying $1969 a year for their electricity from July 1 – up 21.5 per cent on the previous year.

Power prices are set to rise from July 1. Picture: Loic Venance/ AFP)

The increase of $349 is higher than the $321 increase previously forecast.

The AER said increased coal and gas prices, lower reliability of coal generators and the closure of Liddell Power Station in NSW in April were among the reasons for the price rise.

Small businesses in southeast Queensland will be looking at an average price rise of $756, taking their annual bill to $4202.

AER chair Clare Savage said the regulator’s decision was “carefully balanced” and considered cost-of-living pressures, as well as the need for retailers to be able to recover reasonable costs.

“We know households and small businesses continue to face cost-of-living pressures on many fronts, and that’s why it’s important the DMO provides a safety net for those who might not have shopped around for a better power deal,” Ms Savage said.

“In setting the DMO price this year we have sought to protect consumers from unjustifiably high prices and at the same time allow retailers to offer consumers better deals than their standard plans.”

Australian Energy Regulator Clare Savage. Picture: Supplied

Treasurer Jim Chalmers said the government’s decision to cap coal and gas prices had kept bills lower than they otherwise would have been.

“This data confirms our intervention in the market along with our rebates for families and small businesses are doing exactly what we intended – taking the sting out of price rises,” he said.

“It’s clear that our energy intervention has been successful in easing power price rises.”

He said southeast Queensland electricity bills would have increased by another $316 without the price cap intervention.

Last year’s energy crisis, caused by soaring gas prices as well as a series coal-fired power station shutdowns in June and July, saw wholesale prices reach unprecedented levels and sparked fears over the flow-on impact it would have on consumers.

Treasurer Jim Chalmers during Question Time. Picture: NCA NewsWire / Martin Ollman

In an extraordinary market intervention, the Albanese Government implemented price caps on coal and gas producers in December in a bid to reduce the amount by which retail bills will rise.

Queenslanders with a concession card, on the pension or receiving family tax benefits A and B will qualify for a $500 rebate, following the Albanese Government introducing the discount in its May budget. Small businesses will be able to get up to $650 rebate.

In its statement releasing the default market offer, the AER urged customers to shop around for better prices.

“Based on offers available in late April 2023, residential customers switching from a standing offer to the lowest market offer could save 8 per cent to 17 per cent and small business customers could save 18 per cent to 34 per cent, depending on their region,” the report stated.

Queensland Treasurer Cameron Dick on Thursday morning affirmed the upcoming state budget would include “more” energy rebates for Queensland households on top of the discount program being funded in partnership with the Commonwealth.

The cost of this rebate scheme is being shared equally by the state and federal governments as part of a deal struck to cap coal prices.

Mr Dick confirmed the Queensland government was tipping in $323m for this.

“And then we will of course do more for Queenslanders in our budget, it won’t be too long to wait,” he said.

Premier Annastacia Palaszczuk has previously revealed the size of the state’s power rebate would be dictated by the federal government’s plan, but would certainly be larger than $175.