The Australian Energy Regulator (AER) has approved the electricity distributors’ annual pricing proposals for customer network charges in 2022–23 following our compliance check of the proposals against each distributor’s five-year regulatory revenue determination.
Every year the distributors submit a pricing proposal to us that contain the network tariffs they propose to charge their customers to recover their revenues, transmission network charges and costs of jurisdictional schemes.
Electricity bills are made up of the wholesale costs, retail margins, and network charges.
Our annual pricing review relates only to the network charges component of a bill.
| Residential 2022–23 |
Small business 2022–23 |
|||
|---|---|---|---|---|
| $$ change | % change | $$ change | % change | |
| Ausgrid (NSW) | -$15.91 | -2.92% | -$13.03 | -1.27% |
| AusNet Services (VIC) | $70.38 | 10.36% | $120.89 | 11.55% |
| CitiPower (VIC) | -$23.62 | -4.93% | -$15.07 | -1.34% |
| Endeavour Energy (NSW) | $28.66 | 4.94% | $78.36 | 5.06% |
| Energex (QLD) | -$47.96 | -7.55% | -$47.31 | -5.89% |
| Ergon Energy (QLD) | $131.77 | 14.01% | $117.65 | 12.66% |
| Essential Energy (NSW) | $24.61 | 2.78% | $43.74 | 2.32% |
| Evoenergy (ACT) | -$81.20 | -8.66% | -$444.46 | -11.94% |
| Jemena (VIC) | -$1.85 | -0.36% | -$1.31 | -0.09% |
| Power and Water Corporation (NT) | -$97.35 | -9.99% | -$149.56 | -8.09% |
| Powercor (VIC) | $2.70 | 0.49% | $3.00 | 0.32% |
| SA Power Networks (SA) | $10.02 | 1.36% | $24.24 | 1.93% |
| TasNetworks (TAS) | -$9.22 | -1.80% | $6.27 | 0.60% |
| United Energy (VIC) | $18.70 | 3.88% | $39.13 | 4.32% |
Annual network tariff changes occur due to several factors. They follow the revenue path set in the distributor’s five-year revenue determination, plus they include adjustments such as incentive scheme rewards or penalties and adjustments to recover or return any previous under or over‑recovered revenues. They are also adjusted for inflation.
Where overall price movements are small, some tariffs may increase while others decrease.
Most network tariff changes in 2022–23 are less than 5% compared to 2021–22.
AusNet Services’ 2022–23 increases are larger due to the movement in allowed revenue. Last year, revenue was reduced to return previously over‑recovered revenue to customers. This is now followed by an increase in 2022–23, which has created a large change in network tariffs between these two years.
Ergon Energy’s increases are largely attributed to incentive scheme reward payments and the recovery of previous under recovered revenue.
Both Power and Water Corporation and Evoenergy reductions are driven by the return to customers previously over recovered revenue.
More information can be found on the network tariff changes in our Statement of Reasons, published for each electricity distributor.