Budget 2023: What Queenslanders can get to reduce power bills

Some 1.1m Qld households will see a 10% drop in power prices following the federal budget. Here’s who qualifies and when.

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Many Queenslanders can still expect to pay another $338 more on their electricity bills this year, despite the federal budget’s $1.5 billion intervention, but there are 1.1 million households which will see a 10 per cent drop on their power prices.

There will also be opportunities for Queenslanders to get cheap loans for new insulation, double-glazed windows, electric heat pumps for hot water systems, solar, batteries and even more efficient appliances like fridges and dryers

But they will have to wait until the second half of this year for details on how.

Treasurer Jim Chalmers said the energy price relief would “take the edge of winter bills” which would soon be on the way.

The average Queensland electricity bill is $1589 a year, according to Treasury analysis.

Without the government’s coal and gas price caps that was expected to climb to $2273 a year.

The price caps mean most electricity bills will still increase, but to a lower $1937 a year.

It is an increase of $338, but still $336 less than it otherwise would have been.

Queenslanders with a concession card, on the pension or receiving family tax benefits A and B will qualify for a $500 rebate which will actually see their power bills decrease to $1437 a year, a saving of $152 on what they are paying now.

The money will start flowing from July 1, with pensioners and concession card holders receiving the payment automatically, while family tax benefit recipients will receive a letter with instructions on how to register.

The $152 reduction for some Queenslanders is still shy of Labor’s election promise to cut power bills by $275 by 2025.

Federal treasurer Jim Chalmers. Picture: NCA NewsWire/ Dylan Robinson

Budget papers warned that the energy prices in 2024-25 were “highly uncertain” and that the unwinding of rebates would increase retail prices.

It was assumed prices would go up with inflation, which is forecast to be 2.75 per cent in 2024-25.

The $1 billion Household Energy Upgrades Fund will also be set up and run by the Clean Energy Finance Corporation to allow people to make their home more efficient.

Details are still being finalised, including eligibility requirements and starting dates, but up to 110,000 concessional loans are expected to be granted to people to update their homes to reduce emissions and save on power bills.

Mr Chalmers said the measures were designed to “carefully designed to take the sting out of cost-of-living pressures” without adding to inflation.

“Energy bills relief … to take some of the edge of the winter bills that people will be receiving,” he said.

“The household energy upgrades fund (will) make people’s homes more energy-efficient so they can get not just their emissions down but also their bills down compared to what they would otherwise be.”

Originally published as Budget 2023: What Queenslanders can get to reduce power bills