What’s happening?
A new report from the Climate Council claims Queensland households are being overcharged on electricity, as gas corporations and ageing coal power stations continue to drive high prices.
The report, Power Games: Who’s driving high power bills?, argues that the structure of Australia’s electricity market allows expensive gas to heavily influence power prices, even though it supplies only a small share of overall generation.
Climate Council CEO Amanda McKenzie said, “Expensive gas and increasingly unreliable old coal power is relentlessly pushing up our power bills.
“Fortunately, renewables in the system have lowered average household electricity bills by up to $417 in 2024, saving households a collective $3.8 billion. The faster we get more renewables online, the more we’ll all save.
“Australians are world leaders in taking up solar on our rooftops, and those households are saving $1500 a year on average. But more renewables and batteries in our grid means everyone has access to this cheap, clean energy.”
The report also points to what it describes as loyalty penalties, where customers who do not regularly change plans may end up paying more than necessary.
Why it matters?
The report says gas and coal remain the main pressures on rising electricity prices.
Climate Councillor and co-author Associate Professor Joel Gilmore said, “This research makes a clear and definitive case: gas and coal are the two big pressures on rising electricity prices.
“Those who would advocate for keeping coal power stations open are essentially arguing for higher household bills because of the role these clunkers play in pushing up power prices. Rusty old coal power stations are literally falling apart around us – they’ve become so unreliable that even the operators agree it’s no longer economically viable to keep patching them up.
“The only thing you can count on when it comes to a coal-fired power station is that it will keep breaking down, and causing electricity price spikes.”
Fellow Climate Councillor Greg Bourne said, “Gas is the stealthy price setter, tethering our household budgets to volatile and high-cost global markets.
“They have made close to $100 billion in extra revenue since the invasion of Ukraine in 2022, and the current uncertain international environment could well expose us to further turbulence.
“That’s why bills are high. If we delay the roll-out of renewable energy and storage, our household and business power bills will only get higher.”
Local Impact
In Redland City, Bernadette Systa relies on rooftop solar to manage costs for her large household.
In 2022, the family upgraded to a 5kW system and a heat pump. She now saves over $2,000 a year on electricity bills. With government incentives, those savings helped fund an electric vehicle. She also benefits from Queensland’s 44-cent feed-in tariff and plans to install a home battery before the scheme ends in 2028.
In Brisbane, Brad Aldred’s family of four has invested in solar and battery systems for over nine years. They now pay just $13 a quarter for electricity, including charging an electric car. Savings have been reinvested into solar hot water, improved insulation and a modular home battery installed through the Federal Cheaper Home Batteries Program.
In Cairns, Toni Chapman and her husband installed solar panels in 2016 and later added a 10kW battery. Their power bills have dropped to between $60 and $90 per month.
In Hervey Bay, Bianca Sands’ long-running solar system has at times resulted in refund cheques. She estimates total savings of more than $30,000 over 15 years.
By the numbers
• Although fossil gas supplies only around 5% of electricity in Australia’s main grid, it sets the wholesale electricity price up to 90% of the time.
• Around 2.5 million households, or 37%, are paying more than they should for electricity and could save an average of $291 by switching to a better offer.
• In the second half of 2025, nearly 140,000 households installed solar panels and almost 185,000 connected household batteries.
Zoom in
Domestic gas prices are now four times higher than when Australia began exporting gas from the east coast in 2015.
That shift has tied local electricity prices more closely to global markets. The report says gas corporations have made close to $100 billion in extra revenue since the invasion of Ukraine in 2022.
Zoom out
Across Australia, one in three households now has rooftop solar.
The report argues that expanding renewable energy, storage, and the necessary poles and wires will lower long-term costs and reduce exposure to international price shocks.
What to look for next?
Debate over coal plant closures, gas policy and renewable rollout is likely to intensify in Queensland.
The report calls for faster investment in renewable energy and storage, alongside stronger consumer protections to prevent households from overpaying.
