Queenslander households will receive a $1,000 credit on their power bills in July, as the state government tries to fight cost-of-living struggles.
The credit will be applied directly to bills and will cost the government $2.5 billion.
The government said it will be funded by coal mining royalties collected by the state.
Premier Steven Miles said it would be "the biggest contribution a state has ever made ... to power bills".
Eligible seniors, pensioners and concession card holders will receive a further $372.
"That means most Queensland households won't pay an electricity bill in the third quarter of this year," Mr Miles said.
It's almost twice as large as the $550 automatic rebate received this financial year.
According to the government, most Queenslanders will "not pay a cent" on their first bill in the new financial year.
It estimated the move would nearly halve the average household's power bill in 2024/25.
Mr Miles said a special appropriation bill — The Cheaper Power Bill — would be introduced to parliament today and passed "as quickly as possible".
"That will mean that we can contact the energy companies and provide them with the funds as quickly as we can," he said.
The question of inflation
Mr Miles said, because the state owns much of its own energy system, the move was a non-inflationary way to lessen cost of living pressures.
"Energy bills are the easiest way, the most direct way, that we can provide relief directly to families," he said.
Economist Chris Richardson disagreed with the rebate's non-inflationary label, noting Queenslanders "will be better off, but not by as much as you think".
"Everybody's electricity is going to be cheaper … and that's marvellous, but of course everybody will spend the extra money," he said.
"The extra money they spend will tend to push up the prices of everything else.
"Inflation is basically the amount of dollars chasing the amount of [purchasable] stuff, but [this rebate] doesn't change the amount of stuff, it only changes the amount of dollars."
Charity encouraged by rebate
Kevin Mercer, chief executive of St Vincent de Paul, was "really encouraged" by the injection and said it'll mean a lot to struggling Queenslanders.
"Any relief is most welcome," he said.
"Day to day, you're managing your food and daily living costs — your power bill turns up once a month … so there's often bill shock for people."
He said fans and air-conditioning are "really important" when it comes to living in comfort amid Queensland's sub-tropical climate, "but the cost is just horrendous so people just aren't using those utilities".
Mr Mercer told the ABC he hoped to see rental and education support in the upcoming budget, as well as emergency relief for everyday expenses like food.