Electricity prices across Queensland are shifting again, with recent Electricity Market Update data showing rising costs and increased volatility. For strata committees and owners, this matters—because energy is one of the most significant and unpredictable operating expenses in a building. Understanding what’s driving these changes can help committees make more confident, informed decisions.

What The Latest Data Shows

Recent electricity futures data indicates a noticeable change in direction.

After easing toward the end of 2025, prices have begun to climb again in early 2026. Queensland and New South Wales are both experiencing similar trends, with forward pricing showing more fluctuation than stability.

Current indicators suggest:

• Queensland prices remain elevated, with forward estimates increasing into 2027.
• New South Wales continues to sit at higher price levels overall.
• Market movements are becoming less predictable month to month.

While these are forward-looking estimates rather than fixed costs, they are widely used as a guide for contract pricing—meaning they can influence what strata schemes ultimately pay.

Why Prices Are Increasing

Several global and local factors are contributing to this shift.

Global Gas Market Pressure

One of the key drivers is a rise in global gas prices linked to geopolitical tensions. Disruptions to liquefied natural gas (LNG) supply and shipping routes have pushed prices higher internationally.

Because Australia’s east coast energy market is connected to global gas markets, these increases are flowing through to local electricity pricing.

Gas Influences Electricity Prices

Even though gas is not always the largest source of electricity generation, it often plays an important role in setting the market price.

In simple terms, the most expensive generator needed to meet demand can set the price for all electricity in that period. Gas is frequently that generator in Queensland and New South Wales.

As gas prices rise, electricity prices tend to follow.

Increased Market Volatility

Alongside higher prices, volatility has also increased.

Global uncertainty has led to more frequent price swings in energy markets. This is now being reflected in both wholesale electricity prices and forward contract pricing.

For strata committees, this means less certainty when planning ahead.

What This Means for Strata Schemes

Electricity is a shared cost in most strata buildings, covering areas such as lifts, lighting, ventilation and shared facilities. When prices rise or fluctuate, the impact is felt across the entire scheme.

Key considerations include:

• Budgeting becomes more challenging as costs are harder to predict.
• Levies may need to adjust if energy costs increase significantly.
• Timing of contract decisions can affect long-term financial outcomes.

For larger buildings or those with high common area usage, these impacts can be more pronounced.

Knowledge Centre: Key Concepts to Understand

Strata committees do not need to be energy experts, but understanding a few core concepts can make a meaningful difference.

Forward Pricing

Electricity contracts are often based on forward market pricing rather than current spot prices. This means today’s market expectations influence the rates offered for future contracts.

Demand Charges

In addition to usage, many buildings pay for peak demand—periods when electricity use is highest. Managing these peaks can help control costs.

Contract Timing

The timing of when a contract is reviewed or renewed can affect pricing. In a volatile market, waiting too long may lead to higher costs, while acting early can sometimes provide more certainty.

Practical Steps for Committees

Given current market conditions, a proactive approach can help reduce risk.

Review Current Contracts

Understand when your electricity contract expires and what pricing structure is in place.

Consider Timing Carefully

With prices and volatility increasing, reviewing options earlier may help avoid exposure to further market changes.

Improve Visibility

Access to clear energy data—such as usage patterns and peak demand—can support better decision-making and more accurate budgeting.

Closing Thoughts

Electricity markets are becoming more complex, influenced by both global events and local demand. While these changes are outside the control of individual strata schemes, the way committees respond can make a significant difference.

By staying informed through the latest Electricity Market Update and taking a proactive approach, strata communities in Queensland can better manage costs, reduce uncertainty and plan with greater confidence.

Article Contributed by Andrew Szumowski, Business Development Manager at Hum Energy

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