South East Qld power bills to increase by $53 within months

South East Queensland households are set to be slugged an increase in electricity prices while the rest of the country will see a decrease.

Electricity prices are set to increase for South East Queensland households.

Queensland households can expect their energy bills to go up about $53 within months, with the Sunshine State one of the only spots to cop an increase while others see costs ease.

The Australian Energy Regulator on Tuesday released its draft decision on electricity prices. The default market offer is the maximum a customer in the southeast can be charged if they don’t shop around for better deals.

A Queenslander in the southeast on the default market offer will have the second lowest energy bills of capital cities connected to the national grid.

But it is one of only two areas to cop a price increase as the regulator puts increased weight on protecting customers amid the cost-of-living crisis.

Australian Energy Regulator chair Clare Savage.

South East Queensland households will cop a bill increase of $53 from mid this year – for a total of $2022 – if the draft decision is made final.

This is significantly lower than the $349 increase consumers copped in the 2023/24 financial year.

Households in parts of New South Wales including the Hunter and the Central Coast – linked to distributor Ausgrid – will see their bills fall by $54 under the default market offer, securing bills of $1773 a year.

The highest default market offer is $2549 a year for households, carried by customers of major New South Wales electricity distributor Essential Energy.

Energy Minister Mick de Brenni said Queensland still had the cheapest electricity prices out of all Australian states on a “cents per kilowatt basis”.

“Today’s draft figures show it will cost less to boil the kettle in Bulimba than Ballarat, less to charge your phone in Caboolture than Coffs Harbour, and less to turn the AC on in Aspley than in Adelaide,” he said.

“This is before we even take into account the Miles Government’s soon to be announced cost of living relief – that will more than offset any potential electricity increases for households.

“And because we know every dollar counts for Queensland families, we’re cracking down on energy retailers who are charging above the Default Market Offer, with new laws that mean energy companies must advise on the front of energy bills if consumers can get a better deal.”

Small businesses in the southeast will get a minor reprieve of $11 under the default market offer.

Australian Energy Regulator chair Clare Savage said wholesale energy markets had stabilised since the extreme peaks of 2022, but the easing had been offset by pressures seen in network prices.

Under the draft decision, it is expected price changes for all residential and small business customers on standard retail plans will be less than the rate of inflation.

“Poles and wires costs are a large component of retail prices, comprising around 40 per cent of the price,” she said.

“We know that economic conditions have put pressure on many Australians and the increases in electricity prices over the last two years has made energy less affordable for many households.

“In light of this, the AER has, in this decision, placed increased weight on protecting consumers.”

Under regulation the AER is required to set a reasonable per-customer annual price, having regard to the costs of supply and enabling retailers to make a reasonable profit.

Federal Energy Minister Chris Bowen.

Federal Energy Minister Chris Bowen said the fall in prices was encouraging but there was still “much more to do”.

Mr Bowen refused to concede that Labor would not deliver on its promise to lower power bills by $275 come 2025.

“I’m not giving up on the plan for cheaper electricity for Australians, others might by introducing the most expensive form of energy available in the world, nuclear,” he said.