Under the National Electricity Rules (NER) distribution network service providers (DNSPs) are required to submit to the AER an annual pricing proposal which contains proposed tariffs to take effect in the next regulatory year (2012-13). These tariffs form part of a customer’s electricity bill, typically around 40-50 per cent of the total bill for a domestic residential customer on average. The AER is required to approve the proposals if it is satisfied they comply with the NER and any applicable distribution determination, and if all forecasts associated with the proposals are reasonable.
The AER received pricing proposals for 2012-13 from the following DNSPs:
- ActewAGL (ACT)
- Aurora Energy (TAS)
- Ausgrid (NSW)
- Endeavour Energy (NSW)
- Energex (QLD)
- Ergon Energy (QLD)
- Essential Energy (NSW)
- ETSA Utilities (SA)
The AER has determined that the pricing proposals are compliant with the NER and the relevant distribution determination, and that all forecasts associated with the proposals are reasonable.
The NER also require the DNSPs to publish on their websites the 2012–13 tariff information and a statement of expected price trends including the reasons for these expected trends.