The Australian Energy Regulator (AER) has published the approved Queensland, South Australian and Victorian electricity distributors’ annual pricing proposals for network charges in 2024-25.
This follows an assessment by the AER of each of the proposals and proposed drivers to ensure they are consistent with the National Electricity Rules and each of the distributors’ revenue determinations.
All businesses proposed increases to network tariffs this year, the main drivers being updates to inflation, the regulated rate of return and increased transmission costs. Other factors include adjustments for incentive scheme rewards or penalties and any previous under or over‑recovered allowed revenues for each distributor.
Our Statement of Reasons for each electricity distributor provides a summary of the changes in network charges and demand forecasts.
These network charges will be incorporated into retail electricity prices by 1 July 2024. Retailers ultimately determine how these underlying network tariffs are reflected in the retail prices offered to customers.
The AER will also use the approved network prices for Energex and SA Power Networks in the release of the final 2024-25 Default Market Offer for these jurisdictions in late May.
We will receive and assess pricing proposals for ACT, NSW, Tasmania and NT electricity distributors in the coming weeks, following the announcement last week of their five-year revenue determinations for the 2024-29 regulatory period.
View the approved proposals and our Statement of Reasons for each distributor here:
Queensland
South Australia
Victoria
BACKGROUND
Electricity bills are made up of the wholesale costs, retail margins, and network charges. Our annual pricing review relates only to the network charges component of the bill. In most instances network charges make up less than half of the retail bill.
Every year electricity distributors submit a pricing proposal to us that contains the network tariffs they propose to charge their customers to recover their revenues, transmission network charges and costs of jurisdictional schemes.