Queensland businesses are facing dramatically different network charge trajectories depending on their location, with new pricing proposals revealing a stark divide between Ergon and Energex territories for 2025-26.
The contrast couldn’t be more pronounced. While Ergon customers face substantial increases averaging 13-14% (with some small business tariffs seeing increases over 20%), Energex customers can expect largely stable charges with most increases under 1%, and some customers seeing actual decreases. For Queensland SMEs, geography has become destiny when it comes to electricity network costs.
The difference in network charge trajectories reflects the distinct infrastructure challenges and investment requirements facing Queensland’s two major electricity distributors. Ergon Energy, which serves regional Queensland including areas from Cairns to Toowoomba, operates a vast network across diverse terrain with lower population density. This geography creates inherently higher per-customer infrastructure costs.
Energex, covering South East Queensland including Brisbane, benefits from higher customer density and more concentrated infrastructure requirements. The relatively modest increases in Energex territory suggest a network approaching cost stability after previous investment cycles.
For businesses in Ergon territory, the average $232 annual increase for small businesses represents meaningful cost pressure, though some tariff types may see higher increases exceeding 20%. Regional businesses already face various operational challenges, and these network charge increases add another layer of cost consideration for 2025-26 planning.
Large businesses in Ergon areas face more substantial dollar impacts, with increases averaging $3,891 annually. The percentage impact varies by tariff type and business size, with some seeing more moderate increases while others face steeper cost rises.
While Energex shows overall stability, outcomes vary by customer type. Some small business customers may see bill decreases, while certain large business tariffs could face increases above the 1% average. Smart meter customers are particularly likely to benefit from reduced charges.
These network charge differentials create strategic considerations for businesses with multiple locations across Queensland. Understanding specific site impacts becomes crucial for accurate financial planning and potential cost mitigation strategies.
The disparity also highlights the importance of location-specific energy management strategies. What works for managing costs in Brisbane may not be optimal for businesses in regional Queensland, given the different underlying cost structures.
These network charge changes occur alongside other energy market pressures affecting Queensland businesses. While network charges represent just one component of total electricity costs, they form a substantial base that influences overall energy strategy effectiveness.
For businesses in Ergon territory particularly, the 14% network charge increase reinforces the value of comprehensive energy management approaches. Professional energy advice can help identify opportunities to offset these structural cost increases through improved efficiency, better tariff selection, and strategic load management.
The divergent paths also underscore how local infrastructure realities shape business operating costs. Queensland’s economic geography creates different cost environments that businesses must navigate strategically rather than assume uniform conditions across the state.
Network charge impacts shown are estimates based on Ergon and Energex pricing proposal overviews and represent averages across customer types. Actual increases vary significantly depending on specific network tariff, with some customers seeing higher or lower impacts than averages shown. For example, some Ergon small business tariffs show increases exceeding 20%, while some Energex customers may see bill decreases. Individual site consumption patterns and circumstances also affect outcomes. Professional assessment recommended for specific site analysis.
Our energy specialists help Queensland businesses navigate network charge changes and identify cost optimisation opportunities across all territories.
Get Expert Advice
Fields marked with * are required.
Fields marked with * are required.