The Australian Energy Regulator (AER) has issued its final decision on the revenue proposal submitted by the Tasmanian electricity transmission business, TasNetworks (previously known as Transend). The revenue proposal applies for the four years starting on 1 July 2015.
TasNetworks is responsible for the transmission lines that transport electricity across Tasmania. This final decision proposes the revenue amount that this business can recover from its customers from 1 July 2015 to 30 June 2019. Up to 50 per cent of an average household’s energy bill can be attributed to the cost of delivering electricity through the transmission and distribution networks.
“The AER has accepted the revised revenue proposal put forward by TasNetworks in full,” AER board member Jim Cox said.
TasNetworks will be allowed to recover revenue of $693.9 million for the four years commencing in 2015.
“The AER expects that annual electricity bills for a typical residential household living in Tasmania will reduce, on average, by $24 (1.1 per cent) in 2015–16. Similarly, annual electricity bills for small business customers, such as shop owners, are expected to reduce by an average of $41 (1.1 per cent) in 2015–16,” Mr Cox said.
“Prices will remain at these lower levels over the rest of the period to 2019; however there are many factors other than network charges that determine electricity bills.”
This decision included input from an expert panel including consumer advocates that advise 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.
“This is the first decision under the new regulatory framework that allows the AER to closely examine businesses’ spending proposals to ensure consumers are getting value for money,” Mr Cox said.
“TasNetworks was able to clearly demonstrate that it has listened to its customers and taken steps to lower power prices.”
Further information on the CCP and Better Regulation program can be found on the AER website. More detailed information on the final decision can be found in the separate fact sheet for TasNetworks.