The Australian Energy Regulator has accepted the annual pricing proposal from SA Power Networks for 2014-15. The proposal determines the allowable increase in prices for the network components of electricity bills.
This pricing proposal covers distribution, transmission, and jurisdictional solar PV schemes. These components comprise approximately 45 per cent of a residential electricity bill.
The AER assessed the pricing proposal to ensure that it complies with the AER’s 2010 distribution determination. The AER looked specifically at whether the proposed increases are consistent with the price path that had already been approved in that determination.
“Overall the increase in network costs will mean a rise in the average retail bill of about 4.4 per cent or $85 in the 2014-15 period,” AER Chairman Andrew Reeves said.
Distribution and transmission charges generally represent the cost of the infrastructure required to carry electricity from the generators to residential and business premises and to meet regulatory obligations to maintain a reliable and safe network.
The increase in charges also includes an allowance for the solar PV installations occurring as part of the SA government’s solar scheme.
| Residential LV single rate with 5000kwh per annum | Increase to retail bill (per cent) |
|---|---|
| Distribution | 2.8% |
| Transmission | 0.1% |
| Jurisdictional Solar PV schemes | 1.5% |
| Total network | 4.4% |