Regulated Retail Electricity Prices 2013-14

Draft Determination

On 22 February 2013, the Authority released its Draft Determination on regulated retail electricity prices for 2013-14. The Authority followed the same approach introduced in 2012-13 and based prices on an N + R cost build-up approach where the N (network) component is treated as a pass-through and the R (energy and retail) component is determined by the Authority.

Cost-reflective notified prices will increase in 2013-14 due to increases in the underlying costs of supply, which are predominately driven by increases in network charges. Energex’s network charges will increase by around 23% (on average) and Ergon Energy’s network charges by around 13% (on average). Energy costs are the next biggest cost driver and are estimated to increase by around 9%.

For 2012-13, the Queensland Government froze the Tariff 11 notified prices at 2011-12 levels (with an addition to the variable charge to account for the impact of the carbon tax). This led to the fixed charge for Tariff 11 being lower, and the variable charge being higher, than the cost-reflective levels that would otherwise have prevailed. For 2013-14, the Authority is proposing to implement a three-year transitional path to rebalance the fixed and variable components of Tariff 11 so that each component is cost-reflective by 1 July 2015.

The proposed transitional charges for 2013-14 are significantly higher than the frozen charges for 2012-13 and will increase a typical customer’s annual bill from $1,184 to $1,437.

The Authority is proposing to implement further transitional arrangements for customers on most of the existing obsolete tariffs as many of these customers would still face significant price impacts if they were immediately moved to an alternate cost-reflective tariff. The Authority proposes to retain all existing obsolete tariffs with the exception of Tariffs 53, 63 and 64, which will be removed. The prices associated with the retained tariffs will be increased by between 11% and 21% (depending on the tariff). A transition period of seven years is proposed for Tariffs 21, 37, 62, 65, 66, 20 (large) and 22 (small and large), while Tariffs 41 (large) and 43 (large) will be retained for one year only.

The Authority is also proposing that new customers be allowed to access the retained obsolete tariffs (to be referred to as transitional tariffs from 1 July 2013), except for Tariff 37, which has been obsolete for a number of years, and Tariffs 41 (large) and 43 (large), which will be removed at the end of 2013-14. New customers accessing the retained transitional tariffs will be subject to the same transitional period as existing customers.

The Draft Determination, the draft report on energy purchase costs from the Authority's consultant (ACIL Tasman) and data files relating to the modelling of energy costs can be downloaded below, along with fact sheets for customers to help them understand the outcomes of the Draft Determination.

Submissions in response to the Draft Determination closed on 22 March 2013.

Draft Determination

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Regulated Retail Electricity Prices 2013-14

Draft Determination

Draft Determination

Draft Decision Data

Customer fact sheets

Submissions