The Australian Energy Regulator today released its final determination for the amount AusNet Services can recover from electricity customers over the next five years.
Electricity transmission network costs in Victoria will fall slightly in real terms from 1 July, stabilising network costs in the face of rising wholesale and other electricity charges.
The decision reduces the average revenue AusNet Services can collect by $32 million each year (in real 2016-17 dollar terms), down from $543 million in 2012-17 to $511 million in 2017-22. This is almost 10% less than AusNet Services sought in its latest revenue proposal.
AER Chair Paula Conboy said the determination would mean the transmission costs, which account for around 5% of an average Victorian household electricity bill, would fall in real terms, rising by less than the rate of inflation or about $4 for a typical household electricity bill over the five year period.
"With increases in other components of household electricity bills, effective regulation of network costs has never been more important," Ms Conboy said.
Ms Conboy said Victoria’s monopoly transmission and distribution networks are a large component of what consumers pay for a safe and reliable energy supply.
The revenue allowed for AusNet Services includes funding for asset replacement and capital expenditure on security and compliance.
"This final determination provides network revenues that will allow for appropriate investments in infrastructure without consumers having to pay more than necessary for safe and reliable electricity," Ms Conboy said.