Queenslanders to receive significant power bill discount as $321 yearly increase flagged by federal government

Queenslanders will be gifted a state-sponsored discount on their power bills higher than the $175 in 2022 ahead of a $321 surge in electricity prices.

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Every Queensland household will get a state-sponsored discount on their power bill later this year Premier Annastacia Palaszczuk has promised amid confirmation electricity prices in the state could spike by 20 per cent.

She said it would be higher than the $175 rebate the state government had handed out last year, though the specific amount will only be locked once the electricity price safety net is for 2023-24 is settled and the federal budget is handed down in May.

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New figures show Queensland residents’ power bills would rise an eye-watering $321 a year while small businesses in the sunshine state can expect to be slugged an additional $669.

The state will cop the lowest power price increase of any state – with South Australia and New South Wales expecting increases of about 22 per cent, or more than $400 – but it is still a whopping 19.8 per cent rise for households and 19.4 per cent for businesses.

The Australian Energy Regulator’s draft decision on power prices was released on Wednesday morning, delivering a smaller increase than the 23 per cent forecast by Treasury – $50 cheaper than expected.

Queensland Premier Annastacia Palaszczuk. NewsWire / Sarah Marshall

Increased prices, if confirmed with a final decision in May, will kick in from July 1.

The $321 is an average figure for a customer on the default market offer, the maximum retail electricity fees, with customers able to shop around to get lower offers.

“Today I can confirm that our government will be delivering another rebate on household power bills next financial year,” Ms Palaszczuk said.

“We are committed to providing more support to households to help with the impacts of global inflation.

“The federal government will be announcing power rebates to support some households and small businesses in the May federal budget with support from our government. Once these rebates are locked in and we see the final energy prices in May, our government will go further.

“I can announce today that we will extend the power rebate to all households and our cost of living relief will be higher than the $175 rebate we provided last year.

“The final rebate will be determined based on the federal government support and the final power prices.”

Energy Minister Chris Bowen. Picture: NCA NewsWire / Gary Ramage

Opposition Energy spokesman Ted O’Brien warned the price shock would start just in time for winter when the heating goes on.

“Energy bills have skyrocketed despite Labor’s promise of a $275 reduction and now they are set to soar even higher,” Mr O’Brien said.

“Winter is on the way and I have grave fears that senior citizens and families doing it tough won’t turn on the heater for fear of their energy bill.”

But Energy Minister Chris Bowen said there would be more relief on the way – and that prices would have been even higher if Labor had not intervened with coal and gas price caps to contain wholesale electricity price surges.

“We know that every increase will still be tough for consumers and small businesses – and that’s why we will continue to work with the States and Territories to deliver energy bill relief in the May Budget,” Mr Bowen said.

“Russia’s invasion of Ukraine has seen energy costs skyrocket globally, and Australia has not been immune.”

Opposition energy spokesman Ted O'Brien. Picture: NCA NewsWire / Martin Ollman

Last year’s energy crisis, caused by soaring gas prices as well as a series coal-fired power station shutdowns in June and July, saw wholesale prices reach unprecedented levels and sparked fears over the flow-on impact it would have on consumers.

In an extraordinary market intervention, the Albanese Government implemented price caps on coal and gas producers in December in a bid to reduce the amount by which retail bills will rise.

Treasury modelling is predicting prices will rise by 23 per cent in the 2023-24 financial year, but would have gone up a whopping 36 per cent without the intervention.

It works out at a saving of $262 for an average household, if prices had risen by 36 per cent compared to 19.4 per cent.

Originally published as Queenslanders to receive significant power bill discount as $321 yearly increase flagged by federal government

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