Electricity retailers supply homes and businesses under either a market contract or a standard contract.
Under a market contract, prices and bonuses like discounts are negotiated between the retailer and consumer. Prices in market contracts are generally lower than regulated prices or may offer other benefits such as magazine subscriptions, sports club memberships or loyalty scheme points. Over 70% of customers in south east Queensland are on market contracts.
Fewer customers are on market contracts in regional areas due to the way regional electricity subsidies are paid by the government. Find out more.
Under a standard contract, the QCA determines the prices that retailers charge, which are known as ‘regulated’ or ‘notified’ prices.
The Minister for Energy and Water Supply delegates the power to set regulated electricity prices to the QCA. When we calculate regulated prices stakeholders are consulted widely.
The costs of electricity consist of:
the cost of buying electricity on the wholesale market
the cost of the carbon tax and other 'green schemes'
the cost of networks to transport electricity to your home or business
retail operating costs, such as call centres and billing systems, and a retail margin.