Power prices Qld: Comparison shopping can save $120 but $800 hike on the way

While a new report has revealed how Queenslanders could be saving on their power bills in the short-term, massive rises in costs are also in the pipeline.

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Queenslanders could save up to $120 a year by switching electricity retailers, but any benefit will be quickly swallowed up with the cost of an average power bill set to soar more than $800 over two years.

The number of customers in more than $2500 debt to electricity retailers has risen almost 40 per cent in the past year, leading to the energy regulator to declare a “game-changing reform” is needed to tackle the worsening debt problem.

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It comes as the Federal Government weighs up controversial price caps and gas reservation policies in a bid to tackle the energy price crisis, with a decision to be made by Treasurer Jim Chalmers before the end of the year.

Federal Treasurer Jim Chalmers

The Australian Energy Regulator released its annual report into electricity retail markets on Wednesday, revealing competition among the power companies in Queensland has only decreased in the past two years.

It found that as of September a consumer could save up to $120 a year by switching retailers, the difference between the best and worst deals on the market.

Average power bill for an average-income southeast Queensland family in 2021-22

was about $1667, already up almost $200 on the previous year.

In regional Queensland the average bill was $1985, an increase of $180 on the previous year.

But the October budget warned inflation and other pressures could see bills rise 50 per cent over two years – which would add about another $830 to bills for southeast Queensland residents and $990 for regional Queenslanders.

AER chair Clare Savage said up to half of the consumers on hardship programs with electricity retailers could be accumulating more debt as they continue to struggle to meet their ongoing power bills.

“We need to stop the cycle of debt which, for too many people, becomes insurmountable,” Ms Savage said.

Clare Savage. Picture: Australian Energy Regulator

She said these reforms should include earlier identification of vulnerable customers, increased protections for those facing difficulties and reducing the complexity of the energy system for consumers.

On tackling the energy crisis, Mr Chalmers has indicated there are three options – tax, cash handouts for consumers or regulation.

He has all but ruled out a windfall profits tax and handouts, while strongly indicating regulation was likely.

A decision is not expected until after next week’s national cabinet, with Queensland Premier Annastacia Palaszczuk earlier this warning the Commonwealth against any price cap which would impact on the returns of the state-owned coal-fire generators.

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