Understand the electricity supply system
There are 4 parts to our electricity supply:
Generation
Electricity is generated at power stations across Queensland. These power stations are fuelled by coal, gas, oil, biomass, water, wind, heat from the earth (geothermal) and sun.
Queensland’s electricity is generated by government-owned corporations and private companies.
Transmission
Our transmission network transports large volumes of high-voltage electricity over long distances. The network includes the poles, wires and towers that deliver electricity to distribution centres.
Government-owned corporation Powerlink owns and operates a 15,000km transmission network, and is investing more than $5 billion to expand the network.
Distribution
Our distribution network supplies power to homes. Voltage is reduced during this process until it reaches 230V at point of supply for household appliances.
Electricity distributors are responsible for:
- connecting customers to the grid (poles and wires)
- trimming trees
- meter reading (for old accumulation meters)
- maintaining network safety
- emergency response (e.g. lines down)
- power restoration after outages.
Find your distributor
Your distributor can usually be found on your bill, or you can check who is my energy distributor:
- Energex: supplies electricity to customers in South East Queensland (government-owned corporation).
- Ergon Energy: supplies electricity to customers in regional Queensland (government-owned corporation).
- Essential Energy: New South Wales energy distributor which supplies areas in and around Goondiwindi (close to the Queensland–New South Wales border).
Problems with electricity supply
If you have problems with your electricity supply contact your distributor:
Retail
Electricity retailers buy electricity on the wholesale market and sell it to customers.
Customers in South East Queensland can compare offers from electricity retailers on the price comparison website Energy Made Easy.
If you have questions about your electricity account, contact your electricity retailer.
Household electricity costs
The price you pay for electricity includes the following:
- generation costs: creating electricity at a power station that is sold on the wholesale electricity market
- transmission costs: building and maintaining our network of high voltage powerline infrastructure
- distribution costs: building and maintaining the network of mid and low-voltage poles and wires that deliver electricity to homes and businesses
- retail costs: metering, billing and servicing customers
- green scheme costs: associated with the Australian Government's Renewable Energy Target.
Breakdown of electricity bills
A typical residential electricity bill is made up of the following costs:
- 52.4% energy (generation)
- 31.7% network (transmission and distribution)
- 16.6% retail
- -0.7% other costs (e.g. renewable energy target), a negative amount due to lower than forecast retailer liabilities under the Small-scale Renewable Energy Scheme in 2022–23.
This example is based on 2023–2024 retail electricity prices provided by the Queensland Competition Authority.
How electricity prices are set
Pricing and charges for electricity are different in South East Queensland and regional Queensland due to the current regulatory settings.
South East Queensland
Since 2019, the amount energy retailers can charge households and small businesses on standing offers is set by the Australian Energy Regulator. This is known as the Default Market Offer (DMO). The DMO is set each year and works as a bill cap at a specific usage level for customers on standing offers.
In South East Queensland where consumers can choose from a competitive market (over 20 retailers) only 10% of residential customers and 20% of small business customers are on standing offers. The DMO is used as a reference point to compare market offers, but does not directly apply to them.
Read the Australian Energy Regulator’s factsheet about the DMO electricity price safety net for more information.
Regional
Electricity prices in regional Queensland are regulated by the Queensland Competition Authority. Prices are based on the cost of supplying electricity in South East Queensland.
Under the Uniform Tariff Policy, the Queensland Government subsidises the cost of electricity supply to regional Queensland through Community Service Obligation (CSO) payments to Ergon Energy Retail and Origin Energy (for customers in the Goondiwindi-Texas region).
In 2023–24 the Queensland Government budgeted more than $541 million for the CSO, including approximately $90 million for isolated communities.
Read about electricity tariffs and the energy concessions available.
Solar feed-in tariffs
Find out about feed-in tariffs for your solar power system.
Renewable energy
Our pathway to renewable energy is mapped out in the SuperGrid. It brings all elements of the electricity system together for the generation, storage and transmission of renewable power.
More information
- Find out more about electricity prices, tariffs and charges.
- To find the best electricity deal you can compare and choose electricity retailers.
- Learn how to save money on electricity.
- Read about your electricity rights and how to make complaints.