Electricity tariffs and charges
Electricity tariffs are the fee structures retailers charge for providing electricity.
For regional Queensland, tariffs are regulated and set by the Queensland Competition Authority.
In South East Queensland, electricity retailers generally offer similar tariffs but may name them differently.
Compare offers from electricity retailers.
Electricity bill cap
Each year, a bill cap is set by the Australian Energy Regulator (AER) for residential and small business customers in South East Queensland at specified usage levels. This limits the amount energy retailers can charge electricity users on standing offers (default plans) at the specified usage level.
This bill cap is known as the default market offer (DMO) and applies only to standing offer contracts.
The default market offer is:
- a reference bill
- for a specific amount of electricity usage
- for specific types of customer (residential flat-rate, residential flat-rate plus controlled load, small business flat-rate).
The purpose of the bill cap is to shield consumers who do not or cannot shop around for a new electricity deal from unreasonable or unfair prices.
In South East Queensland’s market, where customers can choose from a competitive market (over 20 retailers), about 10% of residential customers and 20% of small business customers are on standing offers.
The DMO is used as a reference point to compare market offers, but it does not directly apply to them. Read the AER DMO factsheet to learn about the electricity price safety net.
In June 2024, the AER released its revised 2024-25 final determination outlining how much energy retailers can charge residential and small business customers on default plans.
It came into effect on 1 July 2024 and applies to customers in South East Queensland, New South Wales and South Australia only.
Electricity tariffs in Victoria are regulated by the Victorian Default Offer, set by the Victorian Government’s Essential Services Commission.
Electricity tariffs
Electricity tariffs have different price structures and access requirements based on the type of use, for example business, industry or domestic.
Contact your electricity retailer or shop around to find the tariff or product that best suits your energy use.
The AER provides a free online price comparator website Energy Made Easy, where customers can search and compare offerings.
Flat rate tariffs
A price for each unit of electricity consumed, regardless of when it is used, plus a daily supply charge.
Time-of-use tariffs
Higher usage charges that apply during the peak period with lower usage charges applied to the rest of the time, plus a daily supply charge. Some have a third intermediate or ‘shoulder’ usage rate between peak and off-peak times.
The time-of-use tariff incentivises customers to shift some of their usage (for example pool pumps, dish and laundry washing, battery energy storage systems or electric vehicle charging, or other discretionary loads) to non-peak time to save on their bills.
Some have the cheapest rate during the day which may be particularly useful to customers wanting to charge battery energy storage systems or electric vehicles.
Demand tariffs
Charges are based on the rate electricity is used rather than the amount used. Generally, demand tariffs have lower daily supply and usage charges.
Controlled load (interruptible supply) tariffs
Electricity supply under this tariff could be disconnected for several hours each day by the local electricity distributor to ensure the best network performance.
Controlled load tariffs are ideal for high-energy appliances such as underfloor heating systems, hot water systems and pools. Usage charges are flat rates and cheaper than continuous supply flat rate tariffs.
These tariffs are only available to households with a continuous energy supply tariff.
There are special requirements for appliances and loads connected to these tariffs, which are also known as economy or super economy tariffs.
Combination tariffs
More complex tariffs, such as combinations of time-of-use and demand tariffs are also available. In South East Queensland, some retailers also offer many other more complex and specialised price structures.
Understand your electricity charges
- Daily supply charges: cents per day (c/day).
- Usage charges: cents per kilowatt-hour (c/kWh).
- Demand charges: dollars per kilowatt ($/kW) per month.
Find out more
- Find out about energy concessions.
- Learn how to save money on electricity.
- Read about Ergon Energy’s meter services charges or contact your electricity retailer to find out about metering charges and services.
- Read about the role of the Queensland Competition Authority in the electricity sector.
- Find out about your electricity consumer rights and how to make a complaint.