Queensland power bills to fall: Here’s how much you’ll save

More than 165,000 southeast Queensland power customers are in line for a discount. Here’s how much you’ll save:

More than 165,000 southeast Queensland power customers are in line for a discount after the energy regulator flagged further cuts to the default market offer.

The Australian Energy Regulator has proposed a fall in the rate, which applies to electricity customers who do not shop around for the best deals, of $69 for residential customers and more than $300 for small businesses.

Electricity bills for more than 166,000 southeast Queenslanders are heading down.

The discounts could kick in from July 1.

Energy and Emissions Reduction Angus Taylor Minister said the AER’s draft determination on the Default Market Offer signalled further substantial price reductions for households and businesses.

“These are significant reductions to the cost of living pressures faced by hardworking Australians, with government policy ensuring that consumers pay less for their electricity and have more money in their hip pockets,” he said.

Energy Minister Angus Taylor says southeast Queenslanders were about to receive “significant reductions” to their power bills. Picture: NCA NewsWire / Gary Ramage

“This year’s price drops are on top of the previous cuts to standing offer prices that were achieved when the Default Market Offer first came into force in 2019.”

The Morrison Government introduced the DMO in 2019 to protect customers from excessively high power bills if they did not proactively shop around for deals and to create a reference price for the market.

Clare Savage, chair of the Australian Energy Regulator. AER. May 2020. Picture: Australian Energy Regulator

In southeast Queensland, more than 166,000 residential electricity customers are on the DMO with a further 25,000 small business customers also on the more expensive deals.

Since the DMO was introduced, customers in the region have saved up to $794 on their annual bills while small business customers have seen savings of up to $3000.

AER Chairwoman Clare Savage said the price update released today was designed to forecast changes in retailers’ costs, including environmental, wholesale electricity and network costs.

“It’s also critical for consumers to remember the DMO is intended as a safety net for those

who don’t or can’t shop around and it’s not designed to be the most competitive deal,” she said.

“Most retailers have cheaper energy deals on offer, so shopping around remains the best

way to get the best price.”

Feedback on the draft DMO is open until March 17.

A final determination will be published on April 30 with new prices taking effect from July 1.