Understanding The Electricity Market In Queensland To Choose The Best Home Plan

In the financial year 2019, Queensland stood second in overall electricity consumption in Australia, with about 65 terawatt-hours. On the other hand, with nearly 2 million private dwellings, the state currently has the country's third-largest market of electricity users.

These statistics are a testament to how thriving the electricity market in Queensland is, making selecting the best electricity plan for your home all the more challenging. That’s why experts recommend electricity comparison Qld as an ideal way to identify the electricity plan suitable for your home electricity requirements.

Here’s what they suggest understanding about the electricity market in Queensland to choose the best home plan.

Queensland Electricity Market Explained

The QCA sets regional small customer prices based on electricity supply in southeast Queensland. It leads to most residential regional customers paying electricity prices, relatively lesser than the cost of supplying them with electricity.

Top experts list the electricity providers, offering the best home electricity plans, with lucrative discounts on these charges by further reducing your bill amount. With the increasing competition in the state, comparing the home plans to find the cheapest electricity provider will save you a considerable amount on your power bill.

Electricity Distribution Networks in Queensland

Queensland has three electricity distribution networks, Energex, Ergon Energy, and Essential Energy.

Before July 2007, Energex directly billed Queensland's homeowners for their electricity usage. But with 1 July 2007 came the retail competition in Queensland’s electricity market. And since then, once your meter gets read, they get forwarded to your chosen retailer, who will send you an electricity bill every three months.

Experts in electricity comparison in Qld suggest comparing these retailers for choosing a provider offering a plan that helps reduce your electricity bill.

Choosing a Provider in Queensland

Initially, customers in Queensland had default retailers; they were Origin Energy and AGL.

But after deregulation legislation and an increase in retailers, you can now switch from high-cost default rates to the best electricity market rates, thus saving around $500 a year.

Reputed consultants allow you to compare and avoid retailers charging a high-standing offer even if massive savings are available. You can save considerable money by choosing plans with better rates based on the home plan as per the EME Medium Usage Estimate offered by trustworthy retailers in your area.

Main Costs Behind Your Electricity Bill

Wholesale, network, retail, and government costs are the four costs to energy providers, accounting for a considerable share of your electricity bill.

In 2019–2020, the wholesale electricity generation costs accounted for around 39% of Queensland residential consumers' total electricity price. On the other hand, network costs accounted for 49%. Retail and government costs each made up for around 6% of the bill.

Electricity comparison experts understand these aspects of your bill and accordingly list top retailers offering affordable electricity plans for comparison to choose the best home plan.

Consult an Expert

According to the AEMC’s annual Residential electricity price trends report 2020, an inrush of solar and wind generation is forecast to drive down power prices in southeast Queensland by 14% in the next three years.

If you wish to make the most out of this trend, consult an expert to compare electricity plans. With the best understanding of Queensland's electricity market and their guidance, you will find the most suitable electricity plan for your home.