The Australian Energy Regulator today approved electricity network tariffs proposed by the Victorian distribution network service providers (DNSPs), CitiPower, Powercor, Jemena Electricity Networks, SP AusNet and United Energy for the period 1 January 2011 to 31 December 2011.
Network tariffs recover the costs associated with transporting electricity along the low and high voltage power lines in metropolitan and rural areas.
The Victorian DNSPs must demonstrate that their proposed tariffs comply with the AER's recent pricing determination and satisfy the pricing principles set out in the National Electricity Rules. In assessing compliance, it is not the AER's role to approve individual tariffs, but rather to be satisfied that the pricing proposals overall comply with the National Electricity Rules.
"The AER is satisfied that all Victorian DNSPs' network tariffs are recovering only the costs that the AER has approved in its final determination and that they comply with the Rules framework," AER chairman Mr Andrew Reeves said.
"The impact of the approved network charges will differ, depending on a customer's individual tariff and which DNSP the customer is connected to."
Mr Reeves noted that for residential customers: "The impact on average network tariffs in various districts is estimated to vary between a reduction of $17 to an increase of $27. This would result in an annual retail electricity bill for the average Victorian residence rising by a total of $8 (around 1 per cent) in 2011."
The AER's approved network tariffs are available at the AER's website and also on the respective DNSP's websites.
Attachment: Estimated impact of approved network tariffs on residential customers for 2011
| DNSP | ($) impact on network bill | (%) change |
| CitiPower | -17 | -5 |
| Powercor | -2 | -1 |
| Jemena Electricity Networks | 27 | 6 |
| SP AusNet | 26 | 6 |
| United Energy | 4 | 1 |
Note:
- It is important to recognise that the estimated impact of the approved network tariff on individual customers will vary based on network tariff, consumption levels and retailers approach to pricing.
- Distribution network tariffs represent around 40 per cent of the total cost of supplying electricity to residential customers and the impact of network tariffs for 2011 are based on an estimated average annual consumption of 6 500 kWh.
- Typically, customers do not see network charges itemised on their final electricity bills. Instead, they are included in tariffs charged by electricity retailers, such as AGL Origin Energy and Truenergy.