Queensland electricity prices expected to rise in 2013-14

Queensland electricity prices expected to rise in 2013-14

22 Feb 2013

Electricity MEDIA RELEASE

The Queensland Competition Authority (QCA) today released a draft determination foreshadowing increases in regulated electricity prices in 2013-14.

QCA Chairman Malcolm Roberts said: “The draft determination forecasts a price increase of 21.4 per cent for the common household tariff (Tariff 11) and 15.7 per cent for small business customers (Tariff 20) across Queensland.

“Unfortunately, escalating network and other costs mean regulated prices will have to rise in 2013-14.”

“In SEQ, network charges, including the cost of the Solar Bonus Scheme, are expected to rise by 23 per cent. The exact extent of this cost increase will be known when the Australian Energy Regulator approves network revenue proposals for 2013-14.” Dr Roberts said.

“Wholesale energy costs are also expected to rise in 2013-14. Green schemes, including the Commonwealth’s carbon tax, account for a significant share (11%) of costs.

“The end of the temporary freeze on Tariff 11 will see higher network costs passed on to residential customers. Likely price increases for the most common regulated retail electricity tariffs

Likely price increases for the most common regulated tariffs

Retail Tariff
2012‐13
Bill
2013‐14
Bill
Typical increases
(per annum)
  $ $ $ %
Tariff 11 – Residential 1,184 1,437 $253 21.4%
Tariff 31 – Night rate (super economy) 242 278 $36 15.0%
Tariff 33 – Controlled supply (economy) 343 408 $65 18.9%
Tariff 20 – Small Business (flat rate) 1,615 1,868 $253 15.7%
Tariff 22 – Small Business (time‐of‐use) 3,638 4,070 $432 11.9%

 

“The QCA understands that price increases are never welcome news. The QCA has rigorously assessed the information before it to ensure that the price increases proposed in the draft determination are necessary to support a sustainable, competitive electricity market in Queensland.

“Most customers in SEQ have already chosen market contracts which usually offer lower prices than the regulated tariffs. It makes sense for customers who can change from regulated tariffs to test the market.” Dr Roberts said.

The QCA is inviting submissions from all interested parties and will be holding workshops across Queensland to discuss its draft determination.

The QCA encourages the community and businesses to comment on the draft determination. A final determination will be released on 31 May setting 2013–14 prices.