Regional Queenslanders to cop nation’s highest power bill rise

Power bills in regional Queensland are expected to skyrocket by up to 28 per cent - the highest rise in the country.

Regional Queenslanders are set to cop the highest power price increase in the country, with average bills expected to rocket up 28 per cent.

It will add another $429 a year to the average bills of those in the regions, according to the Queensland Competition Authority, which released its final decision on the matter on Friday.

This compares to South East Queensland residents who are facing an increase of 21.5 per cent or about $349 dollars a year more.

The increased prices are set to come into effect from July 1.

Power lines and high tension power cables. Picture: NCA NewsWire / Andrew Henshaw

The Australian Energy Regulator and Victoria’s Energy Services Commission set the default market offer, the maximum retail electricity fee, for South East Queensland, NSW, SA and Victoria in late May, while the QCA released its decision on Friday.

According to the QCA’s report, the high price of wholesale electricity costs drove the increase for regional customers.

Residential customers of Ergon Energy on tariff 11 will pay $1926 a year for power, an increase of $429 or 28.7 per cent.

It is a slight decrease of the 28.9 per cent the QCA forecast in its draft decision in March.

Small businesses on tariff 20 can expect to pay $511 more, or an increase of 26.8 per cent, reaching an average annual bill of $2418.

The report found that prices were being pushed up by higher gas and coal prices faced by thermal generators, mostly due to the war in Ukraine and energy sanctions imposed on Russia.

But if found the ongoing problems at the Callide C generator, which has its C3 and C4 generators out of commission and under extensive repairs after an explosion in May 2021, as well as major outages at the Kogan Creek coal-fired generator were also part of the problem.

Regional Queensland power bills are set to rise. Picture: AAP Image/David Mariuz

“These events have placed upward pressure on wholesale energy prices and are important

determinants of Queensland retailers’ energy costs and of the wholesale cost of energy in the

(National Energy Market) more broadly,” the QCA report stated.

“Our wholesale energy cost estimates also consider the potential impacts of the intervention by the Australian and Queensland governments in December 2022 – that is, the temporary price caps for gas and coal.”

It notes that the Queensland Government is continuing to subsidise regional electricity prices, which is expected to cost about $635.2 million in 2022–23.

Opposition treasury spokesman David Janetzki said the regional power price surge was a “bitter blow” for Queenslanders already dealing with cost of living pressures.

“This report points to the Palaszczuk government’s failure to properly maintain its energy assets as a major factor in driving up prices for Queenslanders,” he said.

“Minister Mick de Brenni said multiple times the failures at Callide would have no impact on power prices but he has been proved to be embarrassingly wrong.”

Federal Opposition energy spokesman Ted O’Brien said 80 per cent of baseload energy was expected to exit the power grid by 2035, and that the problems encountered by the Callide C coal-fired power station were an example of the issues already beginning to show.

“As the grid loses supply, investment in new energy generation is flatlining and everyone is hurting,” he said.

“Australia is hurtling towards a catastrophic energy supply crunch under Labor which is driving energy prices sky high and heightening the risk of blackouts and brownouts.”