AER approves 2021-22 network tariffs for Queensland electricity customers

The Australian Energy Regulator (AER) has approved 2021-22 electricity distribution tariffs proposed by Energex and Ergon Energy in accordance with their relevant 2020–25 distribution determinations.

This is the second year of the 2020–2025 determinations for Queensland distributors. The determinations set revenues these distributors can recover to reflect the cost of delivering electricity supply to customers over five years. Each year the Queensland distributors submit to the AER for approval pricing proposals that contain the network tariffs they propose to charge their customers to recover their revenues, transmission network charges and the costs of jurisdictional schemes.

In 2021-22, the network tariff component of the typical annual bill compared to the previous year is:

  • $6 higher for households and $19 higher for small business for Energex customers
  • $42 higher for households and $144 higher for small business for Ergon Energy customers.

These changes will come into effect from 1 July 2021.

The network tariff increases are in line with actual inflation, with reductions in the Queensland distributors’ revenues to pass back to customers previous over-recoveries of revenue and penalties under incentive schemes being offset by increasing transmission network charges.

More information can be found on Energex and Ergon Energy’s pricing proposals, our role in reviewing the proposals, and our decision to approve in our Statements of Reasons:

Electricity bills are made up of a number of components including the wholesale cost, retail margins, and network charges. This decision relates to the network tariff component of the bill only. What customers ultimately pay will be informed by all bill components.

It is important to note that the Queensland Competition Authority (QCA) sets regulated prices for regional Queensland retail customers in the Ergon energy network. For more information, see the QCA’s website.

The AER acknowledges that energy bills are a concern to many households and businesses. We encourage consumers to use the AER’s EnergyMadeEasy website, our free and independent price comparison tool, to find the best deal to suit their energy needs.

Issued date: 
14 May 2021
AER reference: 
AC 61/21
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