Full Retail Competition
Full Retail Competition was introduced by the Queensland Government on 1 July 2007. Previously the majority of regional Queensland customers bought their electricity from Ergon Energy. From 1 July 2007, other electricity retailers are permitted to sell electricity to most customers in Queensland.
Options for Ergon Energy customers
Most Ergon Energy customers have two options:
- You can stay with Ergon Energy and continue to purchase electricity under the Standard Retail Contract (PDF 160kb), meaning the terms and conditions and the government-set tariffs (also called the notified or gazetted prices) set by the Queensland Competition Authority under delegation from the Queensland Government
- You can check other retailers' offers and negotiate a contract with other electricity retailers. A list of electricity retailers can be found on the Queensland Competition Authority website.
10 things to consider before accepting a market offer
Ergon Energy can't advise you on whether you should choose another electricity retailer. The 10 things to consider below may help you to make an informed decision.
Retailers may offer you a lower price, different retail services or other benefits to encourage you to choose their service.
So, when comparing retail offers, here are 10 things to consider:
- Ensure you compare apples with apples. The cents per kilowatt hour (c/KWh) rate is a good start - ask your prospective retailer what their c/KWh price is. The Government-set price charged by Ergon Energy is located on the back of your Ergon Energy electricity bill in the 'new electricity charges' section
- Ask about any service fees you may pay. Ergon Energy charges these pro rata on a daily basis. If you are evaluating a market offer from a retailer, ensure you are comparing this charge for the same number of days as what is on your electricity bill
- Check if a security deposit is required by the prospective retailer and how much it is
- Ask if anything extra is included in the market offer such as bonuses or savings
- Ask how and when you will be billed
- Check how and when you must pay
- Are there any penalties for early contract termination if there is a contract term
- Are there any extra fees that may be charged, such as late payment fees
- Check the retailer understands where your premises is located in Queensland as this could have an impact on the price they are offering
- Check what happens at the end of the contract period. For large customers in Queensland, the retailer must offer your business another market contract at reasonable prices. For small customers in Queensland, you can choose to return to the Government-set prices on a standard retail contract with your current retailer, or accept another market offer from the same or a different retailer. For all customers, once you choose to accept an offer from another retailer, you can't return to Ergon Energy as your retailer at that premises.
Read more about electricity costs in Queensland.
No return to Ergon Energy
Small customers, usually residential and small business customers that use up to 100 megawatt hours (MWh) of electricity a year, and who accept an offer from another retailer, cannot return to Ergon Energy as a retail customer at that premises. Even if your premises is sold, any new or future resident or occupier at that premises cannot return to Ergon Energy as their retailer.
However, your interests as a small customer are still protected. You can still ask your retailer to sell you electricity at the Government-set price under a standard retail contract.
Small customers can find more information on choosing an electricity retailer on the Queensland Government website.
Large customers, usually business customers, who accept an offer from another retailer cannot return to Ergon Energy as a retail customer at that premises. Additionally, although the retailer may be required to offer you a retail contract, the retailer is not obligated to sell you electricity at that premises at the Government-set price under a standard retail contract at any time in the future.
Large customers, typically consuming more than 100 MWh of electricity a year, should ask their prospective retailer if the network prices (PDF 478kb) relevant to their premises have been included in their market offer. Network prices are the charges associated with the service of transporting electricity to a premises via the transmission and distribution networks. Ergon Energy calculates the network prices for a premises and can provide this information to the prospective retailer with the customer's consent. The way that Ergon Energy calculates network prices is regulated by the Australian Energy Regulator (AER). Network prices are only one component of how the price of electricity is calculated.
More information on the retail electricity market is available at the Queensland Government website
Non-eligible customers
A small number of customers in regional Queensland are excluded by legislation from being able to choose their electrical retailer, for example:
- Small customers in 33 isolated communities and in Mount Isa, Cloncurry (who are not connected to the main electricity grid) and Weipa (who are supplied from a private electricity network)
- Customers who buy their electricity through an on-supplier rather than a retailer, such as tenants in shopping centres and caravan parks.
The customer's load must also be metered or be a street lighting customer. Other customers' unmetered supplies such as traffic lights and barbeques in parks for example, cannot be supplied by a retailer other than Ergon Energy.
All of these customers will remain on the Standard Retail Contract at the Government-set prices.
