Why Are Electricity Costs in Queensland on the Rise?

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Electricity Costs Queensland

Post on June 13th, 2015

It’s no secret that electricity costs in Queensland are on the rise. Most homeowners wouldn’t argue with the fact that electricity is vital for everyday living to provide power to homes, businesses, and industries in Queensland.

On top of that, population growth is booming in Queensland. This has created an increasing demand for power, as well as the need to upgrade the electricity infrastructure that services homes and businesses throughout Queensland. This demand that has triggered costly electricity network upgrades is one of the primary reasons that electricity costs in Queensland are rising to record levels.

New Electricity Prices and Tariff Structures in Queensland

According to the Queensland Government Department of Employment, Economic Development, and Innovation, the Queensland Competition Authority is planning to introduce a new range of electricity prices for Queensland customers, which will change the way that monthly power bills are charged.

Residential customers in Queensland will see new electricity tariff changes that include:

  • Customer rewards for reducing electricity usage.
  • Customer incentives for using electricity outside of peak hours.

Right now, Queensland electricity customers are being charged a flat electricity cost for the amount of power that they use, in addition to a fixed supply charge. This new electricity pricing system will still charge a fixed supply rate, but the charge for electricity usage will vary depending upon how much each customer uses per month.

For example, customers that use more electricity will be charged a higher monthly rate than customers that use less electricity, after passing a certain threshold. This billing structure is known as inclining block tariff structure and will be implemented in all electricity costs in Queensland in July 2012.

The purpose of the inclining block tariff structure is to encourage customers to conserve electricity by providing rewards of lower rates for customers that use less electricity per month. This is a tariff structure that has already been implemented in a number of states throughout Australia.

Energy Conservation in Queensland

On top of that, the Queensland Government has decided to invest $45 million in various energy conservation programs. These programs are partnered with leading Queensland electricity retailers Energex and Ergon Energy in order to reduce the amount of electricity used during peak hours throughout the state.

Excess electricity use in peak hours is one of the primary reasons for dramatic electricity cost increases throughout Queensland.

If you’re fed up with paying too much on your monthly power bill, you’ve come to the right place. You can use our accurate electricity comparison service to possibly locate far cheaper rates from electricity retailers near you. We are here to help you save a bundle on electricity every year!

Want a Better Deal on Your Electricity Bills?

At Electricity Wizard, we do all the hard work for you. When you call us, we’ll compare your rates and plans against our preferred suppliers available in your area and help you select a great plan for you to cut down costs and meet any other criteria you may have. Best of all, our service is completely free – so what do you have to lose?


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