April 2, 2020
Power bills for Ergon’s regional Queensland customers are set to drop by $75 a year for a typical household, and $116 a year for a small business, from July 1 this year.
The forecast price cut is outlined in the annual draft determination released on Wednesday by the Queensland Competition Authority (QCA).
Energy Minister Dr Anthony Lynham said the expected price drop was a small piece of positive news in the midst of the COVID-19 emergency.
“The QCA has flagged 2020-21 regional electricity prices are set to fall for the third year in a row and for the fourth time under this government,” Dr Lynham said.
“We understand that people are even more concerned about the cost of living and getting through this unprecedented coronavirus crisis.
“Times are tough, but this will be the biggest bill reduction for typical regional households in more than a decade.”
The forecast price fall complements measures already announced.
Under the State Government’s $4 billion COVID-19 relief package announced last week, all Queensland households will receive a $200 rebate off their electricity bill to assist with their household utility costs for electricity and water.
As well, households will receive a further two $50 electricity dividend payments to be delivered over the next two years.
Small businesses will also receive a $500 rebate on their power bill this year.
The rebate will appear on bills in the coming months, depending on individual billing cycles.
Dr Lynham said even in this unfamiliar climate, Queenslanders could be assured that power bills were going down.
“If the final QCA decision reflects the draft, regional households will also see a 5.3 per cent drop in their annual power bill in the 2021-2022 financial year and small businesses a 5 per cent drop.”
Dr Lynham said the QCA noted that price drops were largely due to reduced network and wholesale energy costs.
“Queenslanders pay the lowest average power prices of any mainland state in the National Electricity Market because we own our electricity assets,” he said.
The QCA draft determination is available online and submissions can be made until May 13.
The final determination expected to be released by late June 2020.
