Queensland energy prices set to rise by 14 per cent
The Queensland Competition Authority (QCA) has recommended in a report released today that energy cost should rise over the 12 months by nearly 14%, potentially adding $840 to a business's energy bills and $280 to a home owner's energy bill.
The costs reflect increases across all components of the supply of energy to the end consumer.
Component increases are:
- Cost of energy: 11% increase
- Network costs: 20% increase
- Retail costs: 18% increase
These components contribute the following to the end consumer's energy bill:
- Network: 47% contribution
- Energy: 44% contribution
- Retail: 9% contribution
These numbers show that the increase in network costs makes the largest contribution towards this coming round of bill increases.
Make It Cheaper says: "Today's announcement brings home the fact that energy bills are not going to come down anytime soon. What's more concerning is that both Origin Energy and AGL suggest that some of the calculations around the increase in the cost of producing and supplying energy actually underestimate what the true cost may be. This means that businesses and consumers in Queensland can expect price increases not just next year, but in years to come."
Whilst the margin retailers can make out of consumers is capped at 5%, the end cost the businesses pay is down how they buy the raw commodity. This means that some suppliers end up being significantly more competitive than others, making shopping around and switching a worthwhile business.