Leading your business through the energy market minefield

The increases will apply to customers billed via a single bundled c/kWh rate. This includes bottle shops and smaller hotels typically spending less than $25,000 p.a. The dollar amounts shown above appear to be for relatively low users of around 5 MWh p.a. As a bottle shop may use 60 MWh p.a. the increases are potentially in the range of $ 9,000 p.a. in south-east Queensland and $6,000 p.a. in regional Queensland.

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Larger Electricity Customers

Larger hotels do not escape a price review, but it will be applied differently. Larger sites are typically billed via an unbundled price with the energy, network (poles and wires), environmental and other charges all billed by their individual components to provide the total bill.

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It is the Ergon and Energex network charge component as approved by the Australian Energy Regulator (AER) that will also change from July 1st.

 

Ergon and Energex have multiple network tariffs but as a rough guide we suggest you can allow a 6 to 8 per cent increase on the network charge component in South-East Queensland and around 3 per cent in regional Queensland.

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Energy Component

For larger sites, a major component of your bill is of course the energy component.

 

The Australian electricity market is the most volatile in the world as the spot traded price can move from say $100/ MWh (ie 10c/kWh) to ~ $15,000/MWh ( ie 1500 c/kWh) in 30 minutes!

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This partly explains why you have a very short validity period when looking at new contracts.

 

The chart below shows prices are currently being traded to 2026. So, this means we can lock in prices today for any period to 2026. To take advantage of any future lower prices, you can leave it to luck, but we suggest it is critical to have a procurement strategy in place so you can lock in prices when they are low.

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QLD Electricity Future Pricing: