Energy price relief on the horizon for regional Queenslanders

Energy price relief on the horizon for regional Queenslanders

Households across regional Queensland can expect their power bill to drop by about $150 this year, as energy prices fall alongside electricity costs across several Australian states. The Queensland Competition Authority handed down its final pricing determination for the next financial year, with typical regional household bills set to fall by 6.9 per cent and businesses by 8.1 per cent, starting from July 1.

The announcement follows a 7.2 per cent decrease in the flat rate for the state's south-east corner, set by the Australian Energy Regulator (AER) in late May. Electricity tariffs in regional Queensland are aligned with those in the south-east corner, subsidising the higher costs of supplying electricity to regional and remote parts of the state.

Speaking in Townsville, Premier David Crisafulli said the government expected regional power supplier Ergon Energy to pass the savings on in full. "People are under an immense amount of pressure — rising fuel prices, rising rents, rising interest rates. This is only a small bit," he said. "The message is clear to Ergon, pass on the savings in full. Lock, stock and barrel — no ifs, not buts, no maybes, no hidden costs."

Coverage comparison

The regional determination comes after the AER's decision to cut the default market offer (DMO) in New South Wales, south-east Queensland, and South Australia. The DMO acts as a safety net by setting the maximum, or ceiling, price retailers can charge affected customers. Fewer than one in ten households are on a default offer, but experts say they are a key reference by which all other power prices are measured.

According to the AER, benchmark power prices will fall by up to 7.7 per cent in New South Wales, 10.7 per cent in south-east Queensland, and 1.1 per cent in South Australia. Some customers in South Australia, however, will see an increase of 1.4 per cent. The range in prices is due to some people being on a flat rate, while others are on a time-of-use tariff, which changes throughout the day.

Small businesses in all three regions will see much bigger falls in their power bills, down as much as 12.8 per cent in South Australia, 14 per cent in south-east Queensland, and as much as 20.9 per cent in New South Wales. In Victoria, which is covered by a separate regulatory regime, benchmark prices will fall by 5 per cent from mid-year under a decision by the Essential Services Commission.

Western Australia, the Northern Territory, Tasmania, and regional parts of Queensland are subject to separate pricing systems.

Key claims

* Energy bills for households and small businesses will fall by up to 10 per cent from July across parts of the eastern states. * Record levels of renewables and batteries are in the power grid. * Household standing offer time-of-use prices will fall by up to 10.7 per cent across South Australia, New South Wales, and Queensland's south-east. * Small business standing offer time-of-use prices are set to fall by up to 20.9 per cent. * The government has implemented new consumer rule changes to add extra help for customers. * Renewable energy supplied 43 per cent of Australia's power throughout 2025. * Typical regional household bills will fall by 6.9 per cent and businesses by 8.1 per cent in regional Queensland. * The Queensland Competition Authority handed down its final pricing determination for the next financial year. * Benchmark power prices to fall up to 10 per cent for consumers and more for small businesses. * Power prices will fall by up to 7.7 per cent in New South Wales, 10.7 per cent in south-east Queensland, and 1.1 per cent in South Australia. * Western Australia, the Northern Territory, Tasmania, and regional parts of Queensland are subject to separate pricing systems.

AER Chair Clare Savage said the falling prices were a result of lower costs in parts of the electricity supply chain and extra power from renewables. "This is a positive outcome with prices coming down for the majority of households and all small businesses across the three regions where the DMO safety net applies," Ms Savage said. "The reductions compared to last year reflect easing costs across most components of the DMO, particularly in wholesale energy, where we've seen lower electricity contract prices, reduced spot price volatility, and increased output from wind and battery generation during evening peaks."

Federal Energy Minister Chris Bowen attributed the price falls to increased renewable energy and batteries lifting pressure off coal and gas used at peak times. "We've got the best sun and wind in the world, and we're using our sovereign renewables to shield our grid from global energy volatility and to bring down your energy bills," Bowen said. "We know energy bills are still too high – because when coal breaks down, your bill goes up – but this news shows steady progress."

The government has also implemented new consumer rule changes to add extra help for customers. From 1 July, plan benefits will have to last the whole contract, price increases during fixed contracts will be stopped, and unfair fees and dodgy discounts will be banned.