The Australian Energy Regulator has published the network charges that will apply from 1 July 2016 for the following ACT and NSW service providers:
- the ACT electricity distributor, ActewAGL
- the NSW electricity distributors Ausgrid, Endeavour Energy and Essential Energy
- the NSW gas distributor, Jemena Gas Networks (JGN)
AER Chair Paula Conboy said ActewAGL, Ausgrid and Endeavour Energy’s network charges will remain constant in real terms from 1 July 2016. Existing network charges will be increased by no more than actual CPI, which is currently 1.5 per cent.
Essential Energy will apply the determination made by the AER in April 2015 and has submitted a 2016–17 pricing proposal. Essential Energy’s network charges for 2016–17 are set out in its pricing proposal.
JGN’s network tariffs will remain constant in nominal terms. The existing network tariffs will not change and there will be no CPI adjustment.
Network charges account for between 40 percent and 55 percent of average household electricity bills in NSW and the ACT. In NSW, network charges represent approximately 50 percent of a customer’s average gas bill.
“There has been uncertainty over future prices since the Australian Competition Tribunal’s decision in February to set aside the electricity distribution determinations and gas access arrangement decision (in the case of JGN) made in April and June 2015,” Ms Conboy said.
“While it will still take some time to resolve the judicial review and remittal process, we’ve arrived at a solution which provides both consumers and the businesses with price stability in NSW and ACT network charges while the broader issues are addressed.”
The new charges are given affect through enforceable undertakings from each of the network service providers.
In addition to establishing the 1 July 2016 network charges, Ms Conboy said the undertakings will oblige the service providers to continue to provide network services consistent with the non-price terms and conditions of the 2015–19 electricity distribution determinations and the 2015–20 gas access arrangement (in the case of JGN).
The undertakings are available at the AER website.
The undertakings from the ACT and NSW service providers do not affect the annual pricing process for other service providers not affected by the February 2016 decision of the Tribunal. The AER’s decision on whether to approve the prices for these other service providers is expected in late May/early June 2016.