Improving operational efficiencies while investing for the future are the key drivers of the Australian Energy Regulator’s (AER) final determination for Evoenergy for the 2019-24 regulatory period.
The AER’s determination allows Evoenergy to recover $851.4 million from its consumers over the five years from 1 July 2019 to 30 June 2024. This means that network charges are estimated to be 9.0 per cent higher at the end of the 2019‑24 regulatory period (as at 30 June 2024) compared to the end of the current period.
Distribution network costs represent about 27 per cent of total electricity bills on average in the ACT.
As a result of this decision the AER estimates that, compared to the end of the current regulatory period, by the end of the 2019-24 regulatory period the average annual electricity bill will be $64 higher for a residential customer and $231 higher for a business customer (or 2.5 per cent higher in both cases). These estimates assume that non-network components of the electricity bill remain unchanged.
AER board member, Jim Cox, said that the decision ensures that consumers pay no more than is necessary for safe and reliable electricity:
“It takes account of the need to invest in networks to cater for the greater use of renewable energy. This includes investment in network capabilities to accommodate distributed generation such as rooftop solar PV.”
Evoenergy has made significant progress in reducing its operational costs over the past five years.
“Consumers will be paying for network investments such as these for decades to come, and it is our role to ensure they pay no more than they need for these services and investments,” said Mr. Cox.