30 April 2025
Energy Queensland acknowledges Australian Energy Regulator investment outcome
Energy Queensland has acknowledged the determination by the Australian Energy Regulator (AER) for Energy Queensland’s electricity network businesses - Ergon Energy Network and Energex for 2025 to 2030.
The determination sets the revenue that the businesses can earn, and therefore the prices the businesses can charge for the use of their respective electricity distribution networks from 1 July 2025.
The AER determination will see electricity prices increase by an average of $48 annually for residential customers.
This increase is predominantly driven by the impact of inflation and interest rates.
“The safety and reliability of our electricity network is paramount,” Energy Queensland’s Chief Executive Officer Peter Scott said.
“The network component of a customer’s energy bill only accounts for about one third of the total bill.
“Energy Queensland’s regulated electricity distribution businesses, Ergon Energy Network and Energex, have always prioritised maintaining and enhancing their infrastructure to ensure that communities across Queensland have access to safe, reliable, and affordable electricity.
“Energy Queensland is committed to delivering the essential upgrades required to address end-of-life infrastructure, manage increasing demand, and enhance resilience against extreme weather events that are part of life in Queensland.”
The AER’s determination allows Ergon Energy to recover $8,579.5 million in revenue from its customers for the 2025–2030 period.
This is $112.2 million (or 1.3%) lower than the network’s revised proposal, and was driven by lower operating and capital allowances and changes in variables such as inflation and interest rates factored into the revenue calculations.
The AER’s decision allows Energex to recover $8,995.5 million in revenue from its customers for the 2025–2030 period.
This is $101.6 million (or 1.1%) higher than the network’s proposal and was driven by a higher capital allowance due to economic variables in the calculation.
The AER determination did not accept Ergon Energy and Energex’s revised operating expenditure proposals, and substituted alternative estimates of $2,331.5 million for Ergon Energy, and $2,442.2 million for Energex.
Due to the application of the Queensland Government’s Uniform Tariff Policy and the Community Service Obligation payment of around $600 million per annum, 99 per cent of Ergon Energy Network customers will pay the equivalent Energex price.
The AER’s determination means that Ergon Energy will receive less revenue for both capital and operating expenditure than what was proposed in the Revised Regulatory Proposal (RRP), and Energex will receive lower revenues for operating expenditure than proposed in the RRP.
“Energy Queensland will review the outcome of these decisions and adjust our plans while ensuring safety remains front and centre,” Mr Scott said.
“During our extensive consultation with customers and stakeholders, they told us affordability is their number one concern, and at the same time they expect us to uphold reliability, resilience, service, and safety.
“With this in mind, we have sought to strike the right balance between investing in the network to provide clean, reliable and smart electricity and efficiently delivering electricity services in the most affordable way.”
For more detail, visit the AER website:
For media enquiries, contact: Justin Coomber 0437 472 442.