The Queensland Competition Authority (QCA) has released its draft determination on regulated retail electricity prices for regional Queensland to apply in 2022–23.
QCA Deputy Chair Madeline Brennan QC said that this year’s draft determination forecasts higher prices for most tariffs, including all the main residential and small business tariffs.
“The expected increase in draft prices is mainly due to a projected increase in energy costs, following several years of falling energy costs, which were a driver of price decreases for each of the last three years,” Ms Brennan said.
“Overall, the draft prices would result in a 4.2 per cent increase in the annual bill for a typical customer on the main residential tariff (tariff 11) and a 4.5 per cent increase for the typical customer on the main small business tariff (tariff 20).”
“The annual bill for a typical customer on the main regulated residential tariff is projected to increase by $54, from $1,290 to $1,344. For the typical customer on the main regulated small business tariff, the annual bill is projected to increase by $95, from $2,119 to $2,213.”
Ms Brennan said it is important to note prices are set in accordance with the Queensland Government’s uniform tariff policy, which means most regional customers pay less for electricity than it costs to supply them.
Ms Brennan noted it is likely there will be changes in the final determination. The price estimates in the draft determination are indicative only, as they are based on information at the time. They will be updated for the final determination, based on updated data and feedback from stakeholders.
Consultation is an important part of the QCA’s assessment processes, and stakeholders are encouraged to provide feedback on the draft determination before the closing date of 7 April 2022.
“We plan to hold a virtual information session on our draft determination in March”, Ms Brennan said.
The final determination is expected to be published by 31 May 2022, and prices will apply from 1 July 2022. The prices are only available to standard contract customers in regional Queensland.
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