The AER has published an issues paper on the tariff structure statements that have been proposed by the Victorian distribution businesses. The proposed tariff structure statements are in response to new requirements in the regulatory regime which seek to make network charges more cost reflective. Once approved, new tariff structures will begin to take effect in 2017 and will take a number of years to fully implement.
“These proposals are designed to produce prices that reflect the costs of providing network services and to allow customers to make more informed decisions about their electricity usage and better manage their electricity bills," AER Chair Paula Conboy said.
The issues paper seeks feedback from interested parties on the proposed changes, including how the network businesses have consulted with their customers in developing their tariff approaches and, how they have taken account of customer impacts. Distribution businesses are required to consider the impacts of price changes upon consumers and in transitioning consumers to new price structures.
“The AER is overseeing the changes to electricity distribution charges to ensure that the new pricing structure reflects the consumption choices of individual consumers. Changing tariffs will affect how different customers pay for network costs, but does not allow distributors to earn more revenue overall,” Ms Conboy said.
The AER regulates the network businesses by setting the annual revenue they may recover from customers. Other components of consumer bills include the cost of generation, transmission network charges and retailer costs. The AER does not set retail prices.
The issues paper is the start of the AER’s consultation process on proposed new tariff structures. The AER’s task is to determine if the proposals comply with the pricing principles set out in the National Electricity Rules.
A draft decision is due by 22 February 2016 and a final decision will be issued in July 2016.
Public forum
The AER encourages consumers and other interested parties to engage in the consultation process. The AER will host a public forum on Monday 14 December 2015 in Melbourne from 10am at the AER’s office, Level 35, 360 Elizabeth Street (the Melbourne Central Tower).
Those wanting to attend this public forum are encouraged to register by email VICtss2015
aer [dot] gov [dot] au (VicTSS2015[at]aer[dot]gov[dot]au). Submissions to the issue paper are due Wednesday 20 January 2016.