Victorian distributors are collaborating on network pricing in preparation for 2021 to 2025 pricing submissions in July 2019
The conversation started on 1 November 2017 in a joint forum on household electricity pricing. The Victorian Electricity Future Forum was the first in a series of joint engagements where the Victorian distributors will examine network pricing options for residents, and small to medium businesses.
Over the past year the distributors sought input and feedback about pricing principles, the different pricing options available, complementary measures to support pricing, and any relevant issues that should be considered for the five year period up to 2025.
On 18 September 2018, the distributors published a Consultation on Network Tariffs and Pricing Design (below). You can provide feedback on the consultation paper here.
You can read or view outcomes of the forum in December 2017 below:
Victorian Electricity Future Forum: Household Network Pricing, 18 April 2018
The Victorian electricity distributors – AusNet Services, CitiPower, Jemena, Powercor and United Energy, are pleased to present a report titled ‘Victorian Electricity Future Forum – Household Network Pricing Report.’ This report, independently prepared by Essential Media, summarises participant comments and key insights from a forum jointly hosted by the five businesses on 18 April 2018.
The April session was the second in a series of forums. These are part of the Victorian electricity distributors’ collaboration with important stakeholders to explore the future of household network pricing. The focus of these forums is to capture the views of stakeholders and customers on network pricing and to reflect these in future tariff reforms.
We would like to thank everyone who has been part of this important conversation. This engagement will also inform the Victorian electricity network businesses submission to the Australian Energy Regulator in July 2019.
Network pricing is a key component of our overall demand management strategy
Every five years CitiPower, Powercor and United Energy submit Tariff Structure Statements to the Australian Energy Regulator (AER) in accordance with the National Electricity Rules. Our aim when developing these statements is to reduce long-term average charges for using our network by promoting efficient network investment and utilisation.
Like the revenue determination process, or regulatory reset, our Tariff Structure Statements go through a formal process of assessment. The assessment determines our revenue for the regulatory period, which is currently 2017-2020.
Our 2017-2020 Tariff Structure Statements can be viewed as follows:
- CitiPower Revised Tariff Structure Statement 2017-2020
- Powercor Revised Tariff Structure Statement 2017-2020
- United Energy Revised Tariff Structure Statement 2017-2020
We then submit Annual Pricing Proposals each year that propose prices and quantity estimates to recover our total annual revenue allowance. Our proposals also set out proposed metering tariffs which cover the cost of the meter and meter data services.
Our Annual Pricing Proposals for 2019 have been approved by the Australian Energy Regulator and came into effect on 1 January 2019. The proposals can be viewed as follows:
- CitiPower Annual Pricing Proposal 2019
- Powercor Annual Pricing Proposal 2019
- United Energy Annual Pricing Proposal 2019
We have already begun planning for the next Tariff Structure Statements for 2021-2025 which are due at the same time as our regulatory proposals in July 2019.