Power prices in Queensland are expected to rise at least nine per cent next year in the wake of a draft decision by the Australian Energy Regulator (AER).
The AER has released a draft determination on forward funding submissions from Queensland's electricity distributors, Energex and Ergon Energy.
It says the cost of distributing electricity is rising and a nine per cent rise balances the long-term needs of the supply network with the need to keep power affordable for consumers.
Queensland Energy Minister Stephen Robertson said he would closely consider the draft determination.
"Nobody likes to see prices rise. But we must ensure a reliable electricity supply continues to meet the demands of an increasingly energy-hungry community, in which we live," he said.
He said while the population of southeast Queensland rose by 33 per cent in the 12 years to 2009, peak electricity demand rose by 99 per cent in the same period.
The AER will become the economic regulator of Ergon and Energex in 2010.
After public consultation, the AER will set a new distribution pricing regime at the end of May, to remain in place until 2015.
The report comes as the Queensland Competition Authority is due to release its report on electricity pricing and tariff structures on Wednesday.
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