Snowy Hydro’s Red Energy raises Queensland electricity prices for 80,000 households

A government-owned electricity retailer is increasing power prices by double the amount of some of its rivals in Qld. See if you’re affected and watch the video on how to get a better deal.

Exclusive: An electricity retailer owned by the federal government has raised its Queensland prices by more than five per cent, adding about $110 to annual bills for over 80,000 customers.

The increase by Snowy Hydro subsidiary Red Energy is the second-largest among big suppliers, after AGL’s 7.5 per cent. It is more than twice the size of the price rise by EnergyAustralia.

Snowy’s move will consume most of the $150 rebate on offer from the federal government in 2025-26, which is down from $300 last financial year.

On top of this, the $1000 rebate introduced by the former state Labor government in its dying days has not been extended into 2025-26 by the LNP.

Snowy Hydro said increasing Red Energy’s prices had been a “difficult decision”.

Anthony Albanese and Chris Bowen in 2021 with the document that claimed prices would fall $275. Picture: Gaye Gerard

A spokeswoman said it knew “many households are facing cost of living pressures and we’ve done our best to keep prices as low as possible.

“These increases reflect rising costs such as wholesale and network costs, which make up over 70 per cent of the average bill,” she said.

The Snowy Hydro spokeswoman said its plans would still be competitive.

Red Energy has 82,000 customers in Queensland and more than one million nationally, making it the fourth-largest retailer.

Many are seething after receiving price change notices – particularly in NSW, where prices will rise by an average of 15 per cent.

“Either withdraw these increases, or expect a lot of flack and departures,” customer Rob Farr wrote on Red Energy’s Facebook page.

Another, Maarten van Valen, said: “It’s a shame because you’re a good company but goodbye Red Energy.”

“Will definitely be looking for a new supplier,” wrote Sean Ward.

“67-cent increase on daily service to property rate is ludicrous,” said customer Alexander Ware. “Looks like I’ll find a new provider.”

This masthead asked the office of federal Climate Change and Energy Minister Chris Bowen whether he considered Commonwealth-owned Red’s increase was acceptable.

In response to the question, Mr Bowen’s office provided an excerpt from a speech he gave three weeks ago.

The excerpt said the government was working to “deliver a better regulated pricing mechanism which will put downward pressure on electricity bills and also ensure the energy market better utilises the huge uptake of rooftop solar and increasingly batteries.”

Mr Bowen is not in Australia at the moment. He is currently touring the Pacific to “reinforce the government’s commitment to practical climate action and progress discussions on our bid to host COP31 in 2026.”

Power bills have soared under Chris Bowen. Picture: Getty Images

COP31 is the world’s biggest clean energy trade fair.

Snowy Hydro’s revenue from retail energy sales rose by 21 per cent in 2023-24, which is the most recent period it has reported. That increase was twice the pace of growth in customer numbers.

Earnings nearly doubled on the previous financial year, to $900m.

Snowy’s head of retail Iain Graham was paid $1.69m in 2023-24, up $350,000 on $1.34m he pocketed the year before.

The company said 2024-25 financial information wasn’t available yet.

Originally published as Snowy Hydro’s Red Energy raises Queensland electricity prices for 80,000 households