Higher energy costs highlights need for targeted support and more renewables

The Queensland Conservation Council and Queensland Council of Social Service are today calling for energy policy certainty and targeted energy rebates in response to the Australian Energy Regulator's (AER) draft electricity price cap for 2025-26.

The draft determination by the AER shows that renewable energy coming online has put downward pressure on electricity prices, but unreliable coal power stations and rising network costs mean that from 1 July 2025, households and small businesses in South East Queensland could pay 5.8 per cent more for their electricity.

This increase could rise in the final determination if coal generator outages and other factors keep wholesale prices high.

The groups, who are members of the Power Together Coalition, are calling for a well-planned transition to renewable energy as well as targeted electricity rebates while prices remain high.

Queensland Conservation Council's energy strategist Clare Silcock said

Power prices are going up again due to consistent outages at our ageing coal power stations, which are becoming increasingly unreliable as they head towards the end of their technical lives.

These price spikes would have been much worse if it wasn’t for the new renewable energy supply that’s been coming online and helping to stabilise wholesale energy prices.

The AER has also highlighted that more extreme weather events, like cyclones, are damaging poles and wires and driving up network costs.

A key to addressing these issues is to build more renewable energy and storage supply so that we’re less reliant on ageing coal-fired power stations while we’re taking action on climate change.

We’re very concerned that right now the Queensland Government doesn’t have a plan to build new renewable energy to replace our ageing coal fired power stations, and they are contemplating repealing Queensland’s renewable energy targets.

Our state’s renewable energy targets are working: they’re driving new investment and energy supply. Whereas energy policy uncertainty stifles investment and leads to higher prices for everyone.

We’d like to see the Queensland Government deliver an energy plan to meet Queensland’s renewable targets, which includes more support for all households, including renters and social housing tenants, to access affordable solar energy.

Queensland Council of Social Service Acting CEO Matt Gardiner said

Low income households and renters spend more of their disposable income on energy than other households.

Continued bill relief is needed while electricity costs remain high to prevent energy poverty.

Targeting bill relief to households with payment difficulties will provide direct relief to those who need it the most.

The equivalent electricity price setting for regional Queensland will be released by the Queensland Competition Authority in May.

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