FAQs - Electricity Price Changes - 1 July 2011

Information for customers on Regulated Rates or a Negotiated Electricity Supply Agreement

Why are electricity prices increasing?

Following a review by the Queensland Competition Authority (QCA), regulated electricity prices in Queensland will increase from 1 July 2011.

 

The QCA estimates that Queensland consumers' electricity prices will increase by an average of 6.6% from 1 July 2011.  This increase is made up of a number of elements:

 

• 5.24% will go towards investments in Queensland's electricity distribution network; the poles and wires that supply electricity
• 0.68% will cover the increase in the cost of electricity
• 0.68% will go towards meeting an increase in energy retailers' costs, such as wage inflation and increased regulatory fees

 

The increased retailer costs referred to above also include the costs associated with funding the Federal Government's Renewable Energy Target (RET) scheme.  This scheme funds renewable energy initiatives and aims to:

 

• encourage additional generation of electricity from renewable energy sources;
• reduce emissions of greenhouse gases in the electricity sector; and
• ensure renewable energy sources are ecologically sustainable.

 

Given cost increases faced by electricity retailers, negotiated electricity prices will also increase on 1 July 2011.

 

Who sets electricity prices?

Each year Queensland's independent statutory authority, the QCA, reviews the regulated or notified prices and determines new rates.

 

Retailers are able to offer negotiated prices to customers that vary from regulated prices.  Negotiated contract prices are generally at a discount to regulated prices.

 

Electricity prices include four components:

 

• Generation costs:  The costs associated with generating electricity at a power station
• Transmission costs:  The costs associated with building and maintaining the State's extensive high voltage power line infrastructure
• Distribution costs:  The costs associated with building and maintaining the State's network of poles and wires that deliver electricity to homes and businesses
• Retail costs:  The costs associated with servicing customers, billing and managing costs

 

More information about electricity prices can be found online at http://www.qca.org.au/electricity and www.aer.gov.au.

 

Will my electricity prices continue to increase?

Regulated electricity prices are reviewed every 12 months by the Queensland Competition Authority and are charged on 1 July each year.  Future changes are difficult to predict.

 

How much will my bill go up?

For an average residential customer on regulated prices the average electricity bill has increased by 6.6% or approximately $114.68 a year.

 

How will the new rate appear on my bill?

If your next billing cycle commences from 1 July, it will incorporate the new charges relating to post 1 July pricing as a new line item for each of your tariffs.

 

If your next billing cycle incorporates electricity usage that occurred before and after 1 July, your next bill will show the new charges relating to post 1 July pricing as a new line item for each of your tariffs.

 

How will Energex read my meter before and after 1 July?

Meters are read throughout the year according to a pre-planned schedule so it is not feasible to read hundreds of thousands of meters on 30 June or 1 July.

 

For this reason, and in accordance with the Electricity Act 1994 and the Electricity Regulation 2006, we will pro-rata customer consumption to take the rate increase into account.  For example, if your account is for a 90 day period ending 31 July 2011, you will be billed for 59 days (3 May 2011 to 30 June 2011) at the old rate and for 31 days (1 July 2011 to 31 July 2011) at the new rate.

 

Do I have to do anything if I am on direct debit?

No.  Your new electricity charges will automatically be debited from your bank account on the nominated date as usual.

 

I signed a contract for electricity.  Why are my prices increasing?

We are careful to make all important information available when a Negotiated Supply Agreement is being considered.  The information on rate changes are outlined in your offer documentation that you received at the commencement of your Agreement.

 

Can I choose another energy supplier if I am not satisfied with Integral's prices?

Yes, you can.  However, you should be aware that our competitors are also expected to increase their prices so you may not receive a better deal.

 

What are my options if I want to terminate my Agreement with Integral?

If you choose to terminate your Negotiated Supply Agreement prior to its end date, you can either return to a standard form contract or choose another retailer.  However, if you terminate your Agreement early you will be charged an early termination fee.  The details of this fee are outlined in the Offer documentation that you received at the commencement of your Agreement.

 

You can only terminate a Negotiated Supply Agreement without penalty during the 10 day cooling off period.  A termination needs to be made in writing.

 

What help is available if I am having difficulty paying my account?

We provide a range of flexible payment options to our customers.  You can discuss these options with a Customer Call Centre representative by calling 133 753.

 

For energy saving tips, visit www.energyinstitute.com.au.

 

What is the Queensland Government doing to help people deal with electricity bills?

The Queensland Government understands some people will find energy price rises difficult to meet and has a range of programs to help eligible customers stay connected to these essential services.

 

These include the:

 

• Electricity Rebate:  A rebate of $216.21 per year is available to pensioners and seniors
• Home Energy Emergency Assistance Scheme:  Assistance for customers experiencing a crisis or unforeseen emergency
• Medical Cooling & Heating Electricity Concession Scheme:  A concession of $230.00 per year is available for low-income customers with a specific medical condition to assist with electricity costs for running air-conditioners to help regulate body temperature

 

For information about these rebates and concessions, visit the Department of Communities website at http://www.communities.qld.gov.au or phone 13 13 04.

 

I don't like these price changes.  Who can I write to?

Please write to our Customer Care team detailing what aspects of the changes you are concerned with and we will respond to you either in writing or by phone.  Please address your letter to Customer Care, Integral Energy, PO Box 6366, Blacktown  NSW  2148.  You can send a fax to Customer Care via (02) 9853 5184 or email the team at integral@integral.com.au.