Australia’s two biggest energy retailers, Origin Energy and AGL, are considering entering the Queensland retail electricity market when it opens to interstate competitors in mid-2007, the Australian Financial Review reported this morning.

The newspaper also said another 10 companies were also expected to enter the market.

The move means that from July 2007, Queensland electricity customers will have the choice of staying on their existing tariffs, seeking a better deal from the government or changing to a new company provider.

The state government has predicted the competition will save consumers about $150 each per year in bills.

Ergon Energy chief executive Tony Bellas said he expected strong interest from competitors, while Energex chief executive Andrew Kremor expressed his confidence in keeping a strong customer base.

Energex and Ergon have already had some taste of competition, having sold electricity in other states in the last few years.

Kremor said he expected Queensland would be similar to New South Wales and Victoria, where it took several years for large numbers of customers to start changing retailers.

Large businesses in Queensland are already open to competition. Among this sector, Ergon Energy supplies almost 60%, Energex 35% and interstate rivals, such as Country Energy and AGL about 6%.

Queensland is now Australia’s second largest electricity market behind NSW, largely thanks to its major industrial users.