The AER has approved Energex’s 2020-21 electricity distribution tariffs in accordance with its 2020-25 revenue determination.
These tariffs will come into effect from 1 July 2020 and see the typical annual bill $9 higher for South East Queensland households and $30 higher for small business.
These price increases are primarily driven by changes in jurisdictional scheme costs. The AER is required to ensure that distributors only recover from customers the amounts they are entitled to under jurisdictional schemes. The AER is not responsible for setting the parameters of jurisdictional schemes.
Electricity bills are made up of a number of components including the wholesale cost, retail margins and network charges. This decision relates to the network charges component of the bill.
The AER acknowledges that energy bills are a concern for many households and businesses at this time. As part of our Statement of Expectations for energy businesses during the COVID-19 pandemic we have provided advice for people impacted by the pandemic.
We encourage consumers to use the AER EnergyMadeEasy website, our free and independent price comparison tool, to find the best deal to suit their energy needs.
Background
The AER sets the amount of revenue Energex can recover from its customers over five years. Each year the AER checks that Energex’s annual tariffs comply with its five-year revenue amount. This information is used by retailers in developing bills for their customers, in particular the network component of the bill.
In June, the AER approved Energex’s 2020-25 network revenue determination. The determination allows Energex’s to recover $6,009.6 million from its customers in 2020–25. The estimated price declines resulting from this revenue decision excluded amounts that could be passed on to customers under the Queensland Government’s Solar Bonus scheme. This is because the solar bonus scheme is outside our revenue determination.
For an explanation of the reasons for our decision and additional background information, please see the Statement of Reasons.