Queensland Electricity Prices Set for Change: What You Need to Know

The Australian Energy Regulator (AER) has officially locked in how much revenue Queensland’s two main power distributors—Energex and Ergon Energy—can earn from July 1, 2025. This decision impacts how much residents and small businesses will pay for electricity over the next five years.

According to the AER, the goal was to find a fair balance between keeping electricity affordable and making sure the network remains safe, reliable, and future-ready. Energex covers south-east Queensland, while Ergon serves regional and remote areas across the rest of the state.

The approved revenue means the average household bill in Queensland will go up by about $48 a year, while small businesses could see a rise of around $97 annually. A big chunk of this increase is tied to higher inflation and interest rates, which make up nearly half the revenue rise.

The AER gave Energex the green light to collect $8.995 billion and Ergon $8.58 billion between 2025 and 2030. That’s a significant jump compared to the 2020–25 period—47% higher for Energex and 42.8% more for Ergon. Much of this funding will go toward upgrading aging infrastructure, preparing for climate extremes, and boosting cybersecurity.

Energex’s capital spending will increase by $717 million, with an additional $171.3 million set aside for operations. Ergon Energy will receive $1.665 billion more in capital expenditure and $42.9 million more for operational needs. This boost will help maintain network safety and reliability, especially in the face of growing demand and extreme weather.

The AER’s final decision follows months of consultation. While customers appreciated discussions on issues like tariffs and public lighting, they felt the main cost drivers weren’t clearly addressed. Consumers highlighted affordability as their biggest concern, and the AER has urged utilities to engage more meaningfully going forward.

In response to consumer feedback, the AER will change the default tariff for new smart meter users. Instead of a demand-based charge, customers will be moved to a time-of-use tariff, which is considered fairer. This change starts 1 July 2025 and will be rolled out over six months.

Energy Queensland CEO, Peter Scott, acknowledged the determination, saying it supports the company’s mission to provide safe, reliable, and affordable electricity. He emphasized that network costs are only one-third of the total electricity bill, and the company will keep adjusting its plans to meet customer expectations for both affordability and quality service.

As changes in electricity pricing and infrastructure reshape Queensland’s energy landscape, EServices4U is here to help. Whether it’s through energy procurement, bill audits, solar and wind consultations, or efficiency planning, we’re dedicated to guiding businesses and households through a cleaner, smarter energy future. Learn more at www.eservices4u.com.au