ActewAGL Distribution (ActewAGL) is proposing higher electricity charges over the next five years according to its regulatory proposal submitted to the Australian Energy Regulator (AER).
ActewAGL has proposed annual increases of an average 2.5% over the next five years for its distribution network. ActewAGL’s distribution charges make up around 30% of ACT consumers’ electricity bills.
ActewAGL will be presenting its proposal at a public forum on 30 July in Canberra. Members of the public are welcome to attend the forum and ask questions of ActewAGL about the proposal. The AER’s Consumer Challenge Panel will also be attending the forum to put forward its perspectives on the proposal.
Over the next nine months the AER will be scrutinizing the proposal through a public review process. Anyone interested in participating in the review will be able to make written submissions or attend a public forum.
“We would like to hear from consumers whether they think these increases are justified,” AER Chairman Andrew Reeves said.
“ActewAGL is seeking a higher return on its assets, despite investment conditions improving and the costs of financing infrastructure businesses decreasing. ActewAGL is also proposing substantial capital expenditure for the replacement of assets.”
“These factors will affect residential and business electricity bills. The AER would like to hear from consumers as we decide whether the charges and the investment that is proposed is in the long term interests of residents and businesses in the ACT.”
The AER has also established an expert panel including consumer advocates that advises the AER on how pricing proposals meet consumer expectations. The Consumer Challenge Panel (CCP) assists the AER to make better regulatory determinations by providing input on issues of importance to consumers. The AER also has direct contact with representatives of consumers in the networks’ distribution areas.
The role of the AER is to set prices that encourage the efficient operation of and investment in electricity networks that is in the long term interests of consumers.
Issues paper
To help consumers better understand ActewAGL’s proposal, the AER has released an issues paper that focuses upon the key aspects of the proposal. The paper highlights aspects of the proposal that drive prices and reliability – issues that impact on consumers need to be carefully examined.
Submissions should be sent to the AER by 22 August 2014. A draft determination is expected to be published in November 2014, and further submissions will be invited at that time. A final determination will be made by April 2015, with new prices to commence on 1 July 2015.
Public forum
The public forum will be held at the AER’s office in Canberra and media are invited to attend. AER Board member Jim Cox will be available to speak to the media at the event.
Time: 9:15am -11:30am
Date: 30 July 2014
Location: 23 Marcus Clarke Street (Behind QT Canberra).