The Australian Energy Regulator has accepted the annual tariff variation notice from Envestra South Australia for its reference and ancillary reference services for 2014–15. The proposal determines the allowable increase in the gas prices for the distribution component of gas bills.
This tariff variation covers gas distribution costs. These typically comprise approximately 40 to 60 per cent of a residential gas bill.
We assessed the tariff variation notice to ensure that it complies with the 2011 access arrangement. The increases we have approved are consistent with the price path that had already been approved in the access arrangement.
The increase in distribution tariffs will mean a rise in the average retail bill of about 1.6 per cent, or $17.39 in 2014–15. This includes an allowance of $1.46 for the carbon tax, which will be returned to customers in future if the carbon tax is abolished.
| Residential tariff with 18.8GJ consumed per annum | Change in retail bill due to network price changes | Change in annual costs due to network price changes |
|---|---|---|
| Distribution | 1.4 per cent | $15.93 |
| Carbon tax | 0.1 per cent | $1.46 |
| Total network | 1.6 per cent | $17.39 |
Note: assumes that distribution costs make up 50 per cent of the retail bill.