This is how the Australian Energy Regulator's decision to cap power prices will impact Queensland
The Australian Energy Regulator has released its decision on capping power price increases. (ABC News: Lucas Hill)
The Australian Energy Regulator (AER) has released its decision on capping power price increases in some markets, including for some Queensland customers.
The bad news is that Queensland didn't do as well as other markets — but the good news is the increases are relatively minor, and small businesses are winners.
Let's take a look at who it impacts, how much more will you have to pay, and how Queensland compares to other states.
What's the DMO and who does it apply to?
The 2024-45 Default Market Offer — or DMO, as it's called — caps the price power retailers can charge households and small business customers on standard retail plans in South Australia, New South Wales and south-east Queensland.
In coming to the decision it imposes on power companies, the regulator takes several things into account, including costs to the retailers, updated networks and inflation forecasts.
This year the AER said that cost of living was the top priority for households, and for that reason it "placed increased weight on protecting consumers".
In Queensland's south-east, just 9.4 per cent of residential energy customers are impacted by the DMO — while 19.7 per cent of small business customers are.
In a statement the AER said the DMO "is an electricity price safety net that protects consumers from unjustifiably high prices".
The regulator said the caps on standard plans also help customers negotiating other plans.
"The DMO also acts as a reference price on bills so all customers can compare plans with other retailers," the regulator said.
Who will pay more?
According to the regulator, the 9.4 per cent of residential customers in south-east Queensland who are covered by the DMO are set to pay between 1.6 per cent and 4.2 per cent more for power over the year.
That amounts to between $37 and $83 more a year, taking into account the RBA's current forecast inflation.
But the regulator points out the energy rebates already offered by the state and federal governments more than offset those increases.
According to AER, small businesses on standard retail plans will also pay about 1 per cent more than last financial year, amounting to about $44 more.
How does Queensland compare?
The DMO only puts caps on three markets — and Queensland has done the worst of all three, before the state's $1,000 rebate is applied.
South Australian households covered by the DMO will have their power bills cut by between $41 and $63.
NSW households are set to pay up to 6.4 per cent less than last financial year — a cut of up to $190 a year, depending on the distribution region.
Meanwhile, NSW small businesses can expect bills to be up to $402 lower than last year, depending on the region, while SA small businesses will see a $512 cut, adjusted for inflation.
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