The Australian Energy Regulator (AER) has published the approved annual pricing proposals for electricity distribution businesses in the Australian Capital Territory, Northern Territory and Tasmania for 2024–25. The AER has also approved annual pricing proposals for Ausgrid and Endeavour Energy for their New South Wales electricity distribution networks.
This follows a thorough assessment by the AER of each of the distributors’ pricing proposals and proposed drivers to ensure they are consistent with the National Electricity Rules and each of the distributors’ current revenue determinations.
All businesses proposed increases to network tariffs this year, consistent with the distribution revenue paths set in our 2024–29 revenue determinations. Other significant drivers are inflation, increased transmission costs and increased NSW Roadmap 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 has used the approved network pricing for Ausgrid and Endeavour Energy in the final 2024-25 Default Market Offer, which was also released on 23 May.
The AER is currently assessing Essential Energy’s 2024–25 pricing proposal.
View the approved proposals and our Statement of Reasons for each distributor here:
Australian Capital Territory
New South Wales
Northern Territory
Tasmania
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.