Power prices Qld: Bills to rise despite LNP election promise

Electricity bills will increase under the Queensland LNP government, despite Premier David Crisafulli’s election claim he would be able to send them lower than Labor could. VOTE IN OUR POLL

• Chilling: Reality of winter bills

Electricity bills will increase under the Queensland LNP government, despite Premier David Crisafulli’s election claim he would be able to send them lower than Labor could.

And the government’s electricity maintenance guarantee will not drive down costs, experts say, with the cost-of-living crisis remaining the single largest contributor to rising electricity bills in Queensland.

Increasing costs attached to Queensland's energy network and retailers, which are being passed on to consumers, are likely to not turn around for years as the market catches up to slowly declining interest rates.

The government has repeatedly promised to put “downward pressure” on power prices and - during the October election - Mr Crisafulli pledged they would be cheaper than under Labor.

“My commitment to Queensland is energy will be cheaper under the LNP because we have a plan to drive down the ongoing costs,” he said.

Despite this, Treasurer and Energy Minister David Janetzki confirmed the widespread $1000 energy rebates delivered by Labor last year would not be repeated in this state budget, nor would he put price caps on coal for state-owned generators to drive costs down.

“Our commitment to put downward pressure on energy prices remains the same because Labor left Queensland in a cost-of-living crisis and never committed a dollar for electricity rebates beyond last year’s pre-election budget,” he said.

“The Crisafulli government is committed to long-term structural cost-of-living relief through delivering the LNP’s permanent 50c fares, abolishing stamp duty for eligible first home buyers, axing Labor’s patient’s tax and introducing the electricity maintenance guarantee to put downward pressure on power prices.”

In 2022 the then Labor government intervened in the energy market through coal price caps after wholesale energy prices in Queensland hit unprecedented highs of $180 per megawatt hour.

The Australian Energy Regulator in May revealed Queenslanders could expect energy increases of up to 3.7 per cent for residential electricity customers and as high as 8.5 per cent for small businesses during 2025.

It equate to about $100 per megawatt hour.

Australian Industry Group climate change and energy director Tennant Reed said power price increases were due to a rise in both wholesale and network costs, with Queensland retailers bearing the brunt of customers dealing with cost of living.

“Retail costs, which make up between 6 and 16 per cent of an electricity bill, the regulator has said it’s going up a third, 35 per cent,” he said.

“Things are going up and retailers covering it, mainly their underlying costs to manage customers.

“The fact that there is a broader cost of living crisis is itself rising the cost, they have more hardship customers, more debts, they’re spending more time talking to people and trying to manage their bills.

“The cost-of-living crisis is the biggest single component in rising electricity costs in Queensland.”

Origin Energy has already notified customers of higher charges from August 1, with daily supply fees jumping nearly 5c.

The energy provider likened the price hike to groceries, insurance or petrol increases.

“cost to source electricity, pay your network distributor and run our business”.

Queenslanders will receive another round of federal government subsidies – $75 per quarter- from July 1.

Originally published as Power prices Qld: Bills to rise despite LNP election promise