The Australian Energy Regulator (AER) has approved the 2020-21 electricity distribution tariffs proposed by Ausgrid, Endeavour Energy and Essential Energy.
These tariffs comply with the requirements of each distributor’s determination. The determinations set revenues these distributors can recover from customers over five years for the cost of delivering electricity supply. This is the second year of the 2019-2024 determination for NSW Distributors.
In 2020-21 the network component of the typical annual bill compared to the previous year is:
- $13.78 higher for households and $33.93 higher for small business for Ausgrid customers
- $21.62 higher for households and $86.72 higher for small business for Endeavour Energy customers
- $16.61 higher for households and $56.73 higher for small business for Essential Energy customers
The changes will come into effect from 1 July 2020.
Drivers of these price increases vary by network, but include factors such as accounting for previous year under-recoveries and increases in transmission charges. Price increases for Endeavour Energy and Ausgrid’s networks are also attributable to adjustments made to reflect the estimated impact of COVID-19 on electricity consumption.
The average residential energy bill consists of several cost components including retail, wholesale, network and green costs. This decision relates to the network cost component only. As other costs may be moving in different directions, changes in retail bills may differ from the estimates provided.
The AER acknowledges that energy bills are a concern to many households and businesses at this time. We encourage consumers to use the AER’s EnergyMadeEasy website, our free and independent price comparison tool, to find the best deal to suit their energy needs.
The AER also acknowledges the impact COVID-19 is having on consumers and the industry. Our Statement of Expectations of Energy Businesses outlines how we are working with industry to support customers.