Queensland Treasurer Criticizes Origin Energy as Power Bills Rise Despite Lower Benchmark Prices

Queensland's treasurer has publicly criticized Origin Energy for increasing power prices even as benchmark electricity prices are set to fall, according to reports from the Australian Broadcasting Corporation (ABC).

Last month, the Australian Energy Regulator (AER) announced a new benchmark pricing structure that could lower household electricity bills by up to 7.2 per cent in south-east Queensland. However, some customers have received notices of higher charges, leading to frustration and confusion.

Russell Smith, a retired army intelligence officer from Maroochydore, told the ABC he was initially heartened by the news of falling benchmark prices. But last week, he received an email from his retailer, Alinta Energy, saying his charges would increase from the beginning of next month. The daily supply charge would jump 13 per cent, while solar export rates would fall from 4 cents to 2 cents per unit.

"We're now trying to live as much as we can off grid, but you obviously still have to be connected to the grid," Mr Smith said.

In a statement to the ABC, Alinta Energy said it aims to provide "competitive, good value offers" across all markets. A spokesperson said the company writes to customers in advance with details of new rates, how they compare to the reference price, and other options available. "While we understand price increases are never welcome, this year's changes reflect the cost of serving customers in each market rather than movements in the DMO alone," the spokesperson said.

The ABC also reported that Queensland Treasurer David Janetzki, who also serves as energy minister, has "named and shamed" Origin Energy for increasing prices despite the AER's determination. Speaking on Wednesday, Mr Janetzki said he had seen a letter to Origin customers suggesting prices would go up "significantly."

"That's not what they ought to be doing," he said. "Origin is the first retailer that appears not to be doing the right thing, and this is just the beginning. I'll be looking to name other retailers if they don't do the right thing."

Mr Janetzki said the AER had made clear that prices should be going down, and that it is important for consumers and businesses to benefit when systemic power prices decrease. He said he had directed Ergon, which is state-controlled, to pass on savings to regional customers — up to 6.9 per cent for households and 8.1 per cent for businesses — in full.

The treasurer accused energy retailers of "playing games" and said there was "no excuse" for increasing one component to offset another, after customers reported confusion about their rate increases. "I want to see savings in households and businesses' pockets, not lining big corporate's," he said.

Mr Janetzki said he would ask the Queensland Competition Authority to investigate and monitor prices. Origin Energy has been contacted for comment.

The ABC noted that the default market offer is a ceiling price, not a floor, and is designed to protect consumers who are unable or unwilling to engage with the market. The AER said default prices would fall up to 10 per cent from July because of declines in the underlying cost of producing power. However, energy companies will now be able to recover more of their costs via fixed charges, which could offset the lower usage charges.

The regulator has urged people to shop around, saying they are free to change their energy plan at any time.

Perspectives

  • Queensland Government: Treasurer David Janetzki argues that retailers should pass on lower benchmark prices to consumers. He has directed Ergon to pass on savings in full and has called for an investigation into retailer pricing practices.
  • Alinta Energy: The retailer says its price changes reflect the cost of serving customers in each market, rather than movements in the default market offer alone. It emphasizes transparency in communicating changes to customers.
  • Consumer Russell Smith: A customer who received conflicting messages about power prices, seeing his charges rise despite the announced benchmark decrease, highlights the confusion faced by households.