Today, the Queensland Competition Authority (QCA) released its final determination on regulated retail electricity prices (notified prices) for regional Queensland in 2019–20.
The QCA commenced its review of notified prices in December 2018, after receiving the delegation from the Minister for Natural Resources, Mines and Energy, the Honourable Dr Anthony Lynham MP.
“The notified prices in our final determination should see many residential and small business customers in regional Queensland paying less for their electricity,” QCA Chair Professor Flavio Menezes said.
“The main reason for this is the drop in the energy cost component of notified prices. We are expecting a big surge in renewable energy entering the National Electricity Market in 2019–20. This expectation has caused our overall estimate of energy costs to drop by approximately 10%.”
“Typical residential customers in regional Queensland will see a 4.4% decrease in their annual electricity costs—or around $62 off their annual bill. For a typical customer on the main residential tariff (tariff 11), this means a bill of $1,336 instead of $1,398.
“Typical small business customers should see a decrease of 5.8% in their annual electricity costs—or around $144 off their annual bill. For a typical small business customer on the main flat rate tariff (tariff 20), this means a bill of $2,347 instead of $2,491.”
The QCA’s review included updating all cost components that contribute to overall consumer prices.
“All of the cost components have been updated to ensure notified prices reflect the latest information–this includes using the regulated network costs from the Australian Energy Regulator (AER), the latest information from competitive wholesale and retail electricity markets, and expert analysis from the QCA’s consultant (ACIL Allen),” QCA Chair Professor Flavio Menezes said.
“It is important to remember the QCA sets prices for regional Queensland in light of government policy. Because of this, electricity prices in regional Queensland are essentially the same as the price consumers pay in South East Queensland. So the difference in the cost (of supplying people in regional Queensland) is met by the Government.”
This year’s review involved extensive stakeholder consultation and participation to ensure the notified prices considered the needs and interests of Queenslanders.
Professor Menezes and QCA staff thanked stakeholders for their helpful participation in this process.
“We want to thank all stakeholders who provided comments and participated, as consultation is such an important part of our process. The workshops held in regional Queensland during March were a great opportunity to share information with stakeholders on how the notified prices are set. Stakeholders were also able to engage directly in the process, ask questions and provide feedback”.
“Finally, there are a number of customers whose transitional tariffs will soon expire, with most set to do so by June 2020. I strongly encourage customers whose transitional tariffs are set to expire, particularly those who have not yet made enquiries, to gather information and make further enquiries on what option is best for them,” Professor Menezes said.
In particular, Ergon Retail has developed an energy monitoring tool called Energy Analysis1, which allows customers to get individually tailored information on their options.”
The QCA’s final determination and notified prices for 2019–20 are available on the QCA website.
All media enquiries: Cole Lawson Communications, 07 3221 2220 or 0411 135 005.
1 The Energy Analysis tool can be accessed here: https://www.ergon.com.au/retail/business/account-options/energy-analysis-for-consolidated-accounts/register-for-energy-analysisView project