Electricity prices to rise sharply in 2013–14

Electricity prices to rise sharply in 2013–14

31 May 2013

Electricity MEDIA RELEASE

The Queensland Competition Authority (QCA) today announced significant increases to regulated electricity prices for 2013–14.

“As foreshadowed in our draft determination in February, escalating costs across the board mean higher regulated prices from 1 July 2013,” said QCA chairman Malcolm Roberts.

“From 1 July, regulated prices will increase by 7% to 24%. In most cases, the increases will be slightly higher than indicated in the draft determination.

“The QCA knows that these price increases will strain family and business budgets. The QCA has only made this decision because the alternative of setting prices below actual costs is unsustainable.

“Unfortunately, when costs rise, prices have to follow.

“For the typical residential customer, network costs will rise by 19% in 2013-14. Retail costs will rise by 22%. Energy costs are expected to rise by 9%.

“The cumulative effect is a 22.6% increase in the bill of the typical residential customer, equivalent to an increase of $5.15 a week or $268 a year.

“The typical small business customer will face an increase of 15.5% or 17.4%. Large business customers will face increases of about 13%. As businesses did not benefit from the 2012–13 tariff freeze, the increase in business tariffs for 2013–14 is lower than the increase in residential tariffs.

“The QCA has also increased prices for nine less widely used business tariffs which offer some customers much lower prices than the main business tariffs. These ‘transitional’ tariffs are set below the cost of supply. The QCA believes these tariffs should be phased out by 2020. The QCA intends to increase these tariffs each year to ensure that the cost of the subsidy received by these customers does not blow out,” said Malcolm Roberts.

Price changes for 2013–14

Retail Tariff
2012‐13
Bill
2013‐14
Bill
Typical increases
(per annum)
 
$
$
$
%
Tariff 11 – Residential
1,184
1,451
268
22.6%
Tariff 31 – Night rate (super economy)
242
272
30
12.4%
Tariff 33 – Controlled supply (economy)
343
397
54
15.8%
Tariff 20 – Small Business (flat rate)
1,615
1,868
281
17.4%
Tariff 22 – Small Business (time‐of‐use)
3,638
4,202
564
15.5%

“The QCA understands the impact higher electricity prices have on the community. The prices announced today follow eight months of detailed analysis and community consultation. The QCA believes that these increases are necessary to support sustainable, competitive electricity supply 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,” said Malcolm Roberts.

The QCA’s price comparator can help customers compare

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