Regulated Retail Electricity Prices 2014-15
Link to Media Release and Fact sheets
On 31 May 2013, the Authority released its Final 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.
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. Energexís network charges will increase by around 19% (on average) and Ergon Energyís network charges by around 17% (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). As a result, the fixed charge for Tariff 11 was held lower, and the variable charge being higher, than the cost-reflective levels that would otherwise have prevailed. From 2013-14, the Authority is implementing 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 transitional charges for 2013-14 are significantly higher than the frozen charges for 2012-13 and will increase a typical customerís annual bill from $1,184 to $1,451.
The Authority is also implementing further transitional arrangements for customers on most of the existing obsolete tariffs as many of these customers would face significant price impacts if they were immediately moved to an alternative cost-reflective tariff. All existing obsolete tariffs will be retained, with the exception of Tariffs 53 (large), 63 and 64, which will be removed. The prices associated with the retained tariffs have been set by the Minister for Energy and Water Supply and will be increased by 10%. A transition period of seven years will apply 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 two years.
New customers will 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 2014-15. New customers accessing the retained transitional tariffs will be subject to the same transitional period as existing customers.
The Final Price Determination, the Gazette Notice of the new prices, ACIL Tasman's final report and associated cost of energy modelling, and the customer fact sheets can be accessed below. Frontier Economics provided commentary on the advice ACIL Tasman provided for the Draft Determination. This is provided below, along with ACILís response to it.
Final Decision Data
Customer fact sheets