Origin Energy introduces electricity competition to regional Queensland VBy Vanessa JarrettABC CapricorniaTopic:Electricity Production and Distribution10m ago10 minutes agoWed 7 May 2025 at 4:20amSome regional Queenslanders will soon have a choice of electricity provider. (ABC News: Chris Gillette)In short: Origin Energy is expanding its retail electricity offering to six regional Queensland areas.Those areas have previously had one choice of electricity provider.What's next?An expert says competition could benefit regional consumers.abc.net.au/news/origin-energy-introduces-electricity-competition-to-regional-qld/105262414Link copiedShareShare articleAn energy provider says it will move into six regional Queensland cities to introduce competition, potentially lowering power bills.Sydney-based Origin Energy will offer electricity plans to residents in Townsville, Cairns, Toowoomba, Mackay, Bundaberg and Maryborough, areas traditionally monopolised by the state government's Ergon Energy.But households with solar will be left out of the plan.Solar not includedQueensland has the highest rate of household solar installation in any Australian state or territory, with more than one in three Queensland homes hosting solar panels.More than a third of Queensland households have solar. (ABC News: Glyn Jones)Origin Energy's general manager of consumer, property and retail, Duncan Permezel, said the company was not offering plans for solar households because it was still working with the Queensland Competition Authority (QCA) on solar tariff pricing."Hopefully we'll see a solar offer being made available soon," he said."But that will take some time to work through with the QCA and the Queensland government." New player in the marketErgon Energy operates as the distributor in rural and regional Queensland, transporting electricity from powerlines, underground channels and wires to customers.Are energy retailers profiteering?Profit results from AGL and Origin have prompted calls for more to be done to reduce electricity and gas prices.Electricity retailers, such as Origin Energy, purchase electricity from the wholesale market and sell it to homes and businesses.The number of retailers has grown in south-east Queensland, but Ergon Energy has remained the only option for regional customers.To offset price gouging, the Queensland government pays a Community Service Obligation to its own company, Ergon Energy, of $600 million to ensure regional customers pay the same regulated prices as consumers in south-east Queensland.This subsidy makes it hard for other energy retailers to compete with Ergon Energy's subsidised prices.Mr Permezel said this was why the company was initially offering limited products."We think we can offer electricity and other value adds to consumers, but we would love to see that subsidy extend so that we can offer more services and talk to the full region," he said.Shaking up the monopolyCentral Queensland University resource economist John Rolfe said competition could benefit consumers and had worked in other states.Origin Energy is shaking up regional Queensland's electricity market. (ABC News: Matt Roberts)"Competition is a wonderful thing in terms of helping customers to have a little bit of choice and finding options that suit," he said."Competition helps to provide some confidence to customers that they are getting reasonable deals because they can then shop around and compare prices from alternate suppliers."Professor Rolfe said a monopoly — where one operator sold to the whole market — would usually lead to higher prices, but government subsidies had avoided that.Understanding your power billPhoto shows Collage of electricity bill behind a green mountain with powerlines on orange background.We take a closer look at the average power bill to see which sections Australians should be keeping an eye on or asking questions about.While Origin will not have access to subsidies, it will not have the contractual Community Service Obligation to service all customers like Ergon Energy does."They've [Origin Energy] focused on the bigger regional centres … so it's probably relatively low cost for them to roll out to these extra cities and they've obviously done the sums and think it's worthwhile," Professor Rolfe said."Whether they get a big enough customer base coming across to them to make it really remains to be seen."Professor Rolfe said if Ergon Energy lost a high percentage of customers, it would impact its revenue."The quid pro quo is that it's going to increase the cost for Ergon and make it harder for them to maintain that uniform tariff/customer service obligation," Professor Rolfe said."So, it will increase their overall cost base and reduce their revenue."ABC Capricornia — local news in your inboxGet our local newsletter, delivered free each FridayYour information is being handled in accordance with the ABC Privacy Collection Statement.Email addressSubscribePosted 10m ago10 minutes agoWed 7 May 2025 at 4:20amShare optionsCopy linkFacebookX (formerly Twitter)Top StoriesPakistan's prime minister vows India's attacks will 'not go unpunished'LIVEPhoto shows A man rides his motorbike through rubble in the darkLiberal leadership race narrows to two likely contenders, Ley and Taylor Topic:Liberal Party of AustraliaPhoto shows Angus Taylor Sussan LeyPeter Dutton lands in Canberra as Coalition MPs divide on nuclear policyLIVEPhoto shows Peter Dutton walks through an airport with microphones and cameras surrounding him.ASIC takes action against Macquarie for 'significant' failuresTopic:Business and Industry RegulationPhoto shows Macquarie Group headquarters, SydneyA feedback loop tanked Dutton's campaign in its final weekAAnalysis by Annabel CrabbPhoto shows Clive Palmer NPCRelated storiesLiberal leadership race narrows to two likely contenders, Ley and Taylor Topic:Liberal Party of AustraliaPhoto shows Angus Taylor Sussan LeyLabor's home battery subsidy kicks off 'strong demand'Topic:ExplainerPhoto shows A composit image of a charging battery symbol and a man installing rooftop solar.Australia sits on huge reserves of critical minerals, but what do they do?Topic:ExplainerPhoto shows A person holds a handfull of ground nickelRelated topicsBundabergCairnsElectricity Production and DistributionEnergy MarketsEnergy PolicyMackayRegional CommunitiesRockhamptonToowoombaTownsvilleTop StoriesPakistan's prime minister vows India's attacks will 'not go unpunished'Topic:Unrest, Conflict and WarPhoto shows A man rides his motorbike through rubble in the darkLiberal leadership race narrows to two likely contenders, Ley and Taylor Topic:Liberal Party of AustraliaPeter Dutton lands in Canberra as Coalition MPs divide on nuclear policyTopic:ElectionsASIC takes action against Macquarie for 'significant' failuresTopic:Business and Industry RegulationA feedback loop tanked Dutton's campaign in its final weekAAnalysis by Annabel CrabbJust InMember for Lingiari calls out racism at pre-polling boothTopic:Government and Politics6m ago6 minutes agoWed 7 May 2025 at 4:25amRelief felt by Australians as cost of crude oil drops to four year lowTopic:Oil and Gas7m ago7 minutes agoWed 7 May 2025 at 4:24amNew player shakes up regional Queensland electricity monopolyTopic:Electricity Production and Distribution10m ago10 minutes agoWed 7 May 2025 at 4:20amKaren Webb's time as police commissioner was not without controversyTopic:Police12m ago12 minutes agoWed 7 May 2025 at 4:19amMore Just InBack to top