Ergon Tariff Update

From 1 July 2025, new residential electricity tariffs will take effect across regional Queensland under Ergon Energy’s updated pricing structure. These changes, approved by the Australian Energy Regulator (AER), are designed to support fairer cost recovery, encourage off-peak energy use, and prepare for a grid with more solar, battery, and smart meter integration. Here’s a breakdown of what’s changing and what it means for household customers.

Tariff 11 – General Usage Tariff

Tariff 11, the standard flat-rate residential tariff, will undergo a minor rate reduction in energy usage cost, but with a higher daily charge:

• Usage rate: $0.33/kWh (down from $0.34)
• Daily supply charge: $1.69 (up from $1.37)

While the per-kWh cost is slightly lower, the higher fixed daily charge means a typical household using 4116 kWh/year will see an average annual increase of about $72, or 3.8%.

Controlled Load Tariffs – Tariffs 31 & 33

These tariffs offer cheaper power to run specific appliances like hot water systems or pool pumps during off-peak times:

• Tariff 31: $0.18/kWh (down from $0.19/kWh)
• Tariff 33: $0.19/kWh (down from $0.21/kWh)

These remain the cheapest energy rates available but can only be used for dedicated circuits.

Solar Feed-In Tariff (FiT)

The regulated solar feed-in tariff is dropping substantially:

• New FiT rate: $0.086/kWh, (down from $0.123/kWh)

This reduction reflects lower wholesale electricity prices during the day due to the growth of rooftop solar. Households with solar will earn less for exported power, especially during peak sunlight hours.

Time-of-Use (TOU) Tariffs – New Default for Smart Meters

From 1 July, households with smart meters will be assigned to a new Time-of-Use Energy tariff by default. This tariff offers different rates based on the time of day, encouraging smarter energy use and easing pressure on the grid during peak periods.

TOU Tariff Rates (from 1 July 2025):

• Peak (4pm–9pm): $0.457/kWh
• Shoulder (9pm-11am): $0.28/kWh
• Off-Peak (10pm–6am): $0.227/kWh
• Daily supply charge: $1.49/day

Customers who avoid high-consumption activities during peak hours could reduce their bills, especially if using major appliances overnight or early morning.

Transition and Tariff Reassignment

• All new residential customers with smart meters will be placed on TOU tariffs by default.
• Existing customers with legacy TOU or optional demand tariffs will be moved to TOU Energy tariffs over a six-month transition period beginning in July.
• Customers with basic (non-digital) meters can remain on flat-rate tariffs like Tariff 11, unless they choose to upgrade.

As the price of electricity continues to rise, and the solar FIT decreases, consumers are looking to store their excess power from their solar system in a battery storage solution. With the commencement of the Federal Battery Rebate Scheme on 1st July 2025, now is the best time to explore your options. Contact Chris to discuss what these options are, and if they are the best fit for your situation.