All about electricity pricing

Will I get a better price?

A company would have to offer you a better deal if they want to win your business. It is best to shop around to see which retailer offers the best package for your particular needs.

If you don't want to change retailers, you don't have to do anything. Your existing electricity retailer will continue to provide your electricity at the regulated electricity price set annually by the Government.

Will I pay more for my electricity?

What you pay for your electricity depends on the price you agree with your retailer and the amount of electricity you use. You should compare prices and offers to make sure you get the best deal for your needs.

And, you can stay on the regulated price set annually by the Government if you want. Householders and small businesses in regional Queensland who do not receive an alternative offer from a retailer will automatically stay with Ergon Energy on the regulated electricity price.

Remember too that no pricing structure is static.

Market prices are likely to fluctuate and your market contract may take this into account, or your retailer may fix your electricity price for the duration of the contract.

The Government-set regulated price will be revised at least annually to take into account shifts in the cost of providing electricity.

You should also be aware that the major shifts in cost to the consumer over recent years have been the result of substantially increased electricity consumption through the use of appliances such as air conditioning. If this is a concern to you, you should go through your old electricity bills to check how much electricity you are using. You should also check whether your retailer offers different prices depending on how much electricity you use.

To find out more about the electricity used by common household appliances, click here(new window).

What should I look for when comparing electricity prices?

First, read all offers carefully, make sure you are comparing like for like, and check whether you'll be better off.

There are a number of separate elements that can be included in electricity pricing, such as the price for electricity used, network charges and service charges. If you are comparing prices, make sure you check what has been included and what is excluded from your offer.

Things to look for other than price include:

payment methods
early termination or exit fees
the length of the contract
any special conditions
any escalation clauses in multi-year contracts
other services or incentives offered.

The Queensland Competition Authority has set up a price comparator so you can compare electricity prices on offer by retailers.

Important things to check!

When comparing offers make sure you check:

the details of any package prices or rates at which electricity will be charged (compare them to what you are paying now)
how much electricity you currently use
what is included in the package price
how and when you will be billed
how and when you must pay
any penalties for early termination of the contract
any fees and charges, including minimum charges, late payment fees, etc.

Who decides the price of electricity?

All retailers will set their own market prices. You should compare prices before making a decision, including what you are paying right now on the Government-regulated price.

The regulated electricity price will continue to be set annually by the Queensland Government and is available to all small electricity customers in Queensland no matter who their retailer is, or where they live.

What's the regulated electricity price?

All households and small business customers are currently billed for their electricity based on prices set annually by the Queensland Government.

The regulated, or notified price, will remain as an option for all small Queensland electricity customers and you can stay on this price if you wish, no matter who your retailer is, or where you live.

Or, you can accept another retail offer with a retailer of your choice if you think you can make savings or receive other benefits.

The Queensland Competition Authority has set up a price comparator so you can compare electricity prices on offer by retailers.

What's the market price for electricity?

The market price is a price set by the retailers. It is not regulated or set by the Government - it is entirely determined by the market. Retailers competing for customers in the market are likely to offer you the best price they can to win your business.

What is a unit price for electricity?

The electricity you use is measured in kilowatt-hours(kWh) or megawatt-hours (MWh). A unit price is the price per kWh or MWh. This is how you will be able to compare prices from different retailers, and compare these against the Government's regulated price. Check your recent bills to see how much energy you usually consume - and don't forget you may use more or less electricity in summer or winter.

What are network charges?

Network charges are also referred to as transmission or distribution charges. You pay a network charge as part of your bill that is your contribution towards maintaining the electricity transmission and distribution networks to the highest possible standard of quality and reliability.

Will I still get an off-peak price for my hot water and pool pump?

You should ask your retailer whether they have any off-peak or time-of-use prices, and research and compare what other retailers may be offering. The tariff 31 and tariff 33 regulated prices will still be available as part of the Government-set pricing system.

Why is electricity cheaper in Brisbane and the south-east corner?

It is the energy retailers - not the Government - who decide which areas they will do business, and the prices they charge. Most of the competition is expected to occur in the south-east of the State where the most commercially-attractive mass market is.

It is more expensive to provide electricity infrastructure and services in rural and regional Queensland, and lower populations in these areas mean the markets are much smaller and less commercially-attractive for retailers. This is why the Queensland Government continues to heavily subsidise electricity services in regional Queensland.

So if you live outside the south-east corner, even if you live in a big regional city, you are unlikely to get a competitive offer initially. This is likely to change with time, as retailers become established in the Queensland market.

Ergon Energy will continue to be the retailer for regional Queensland customers and provide electricity at the government-subsidised regulated price.

To find out more about how competition applies to regional Queenslanders, please click here.

Do I get a subsidy on my electricity price?

Only regional Queenslanders receive a subsidy on their electricity price.

This is to overcome the high costs of providing electricity infrastructure across regional Queensland's vast geographic area, and to make sure that all Queenslanders, no matter where they live, have access to an affordable electricity supply.