Powering Queensland: How It Works
With approximately 1.6 million residential households using power across the state, Queensland is the third largest electricity market in Australia, next to NSW and VIC.
The sunshine state’s two main power distributors are Energex – supplying electricity to South-East Queensland, and Ergon Energy, which caters to rural and regional Queensland residents.
Referred to as “retailers”, electricity suppliers purchase electricity from generators at wholesale, who in turn resell to end customers. In 2007, full retail competition in the electricity market was introduced to the sunshine state, thereby allowing customers to choose their preferred provider.
While South East Queensland now has a competitive market, which is good news for customers, unfortunately the Ergon Energy network area remains uncontested, meaning those who live in rural and regional Qld have no choice but to use Ergon as their retailer until such time as new companies begin to compete.
Paying For Your Electricity In Queensland
The amount you pay comprises of a fixed service amount per day (charged in cents), plus an amount per kilowatt hour; based on how much power you use per hour (cents per kWh).
In Queensland, the amount charged by electricity retailers is set by the Government. This is to safeguard against rural customers being charged more than city dwellers purely because of their location. However, given the lack of competition to Ergon Energy, the real benefit that customers living within their network receive is debatable at this time.
Can You Get A Better Deal On Your Power?
If your electricity bills are getting steeper, perhaps it’s time to switch energy providers. At comparethemarket.com.au, we could help you find a better rate by allowing you to compare a number of electricity suppliers in the one place.