Revealed: How much Qld power bills are about to rise

Queensland power bills are set to soar, according to Treasury modelling ahead of the energy regulator’s decision this week.

Queensland power bills are predicted to rise by another $372 a year, based on Treasury modelling ahead of the energy regulator’s decision this week.

The Australian Energy Regulator will midweek release its draft decision on how much the default market offer, the maximum retail electricity fees, will increase by from July 1.

It will put to the test the government’s controversial coal and gas price caps, which were intended to put downward pressure on retail power bills.

Energy Minister Chris Bowen

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.

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.

Treasury modelling is predicting prices will rise by 23 per cent in the 2023-24 financial year, but would have gone up a whopping 36 per cent without the intervention.

It still means the average customers on the default market offer will see their bills rise by $372 a year – a $211 saving on what it would have increased by otherwise.

Energy Minister Chris Bowen’s office said the Minister did not want to pre-empt the AER’s decision.

But last week Mr Bowen said Labor’s actions meant lower power bills.

“We acted to cap gas prices and worked in concert with the governments of Queensland and New South Wales to cap coal prices,” he said.

“This is having an impact and it will have an impact in what we will see next week.”

Opposition energy spokesman Ted O'Brien

Opposition energy spokesman Ted O’Brien said power bills had gone up, despite Labor previously promising a cut of $275 a year, while prices would rise again this week.

“Labor’s energy policies have failed and it’s Australians who can afford it the least who will be impacted the most,” he said.

“High electricity prices are a direct result of Labor’s energy policies and it will get worse yet because Labor is doubling down on ideological idiocy.”

Australian Energy Regulator chair Clare Savage has previously indicated the coal and gas price caps were likely to reduce prices “to some extent”, but that additional investment was also required to replace ageing infrastructure.

The regulator will release a draft determination, before releasing the final determination by May 26 and the new price coming into effect on July 1.