Notified Electricity Prices 2010-11

Draft Decision

The Authority released its Draft Decision on the 2010-11 BRCI on 18 December 2009.

In its Draft Decision, the Authority estimates that the BRCI (the cost of supplying electricity to retail customers, calculated in accordance with the provisions of the Electricity Act and the Electricity Regulations) will increase by 13.83% between 2009-10 and 2010-11. The estimated increase is made up of:

an increase in transmission and distribution costs of 20.1%, reflecting the ongoing significant investment in the distribution networks approved by the Australian Energy Regulator. Transmission and distribution costs account for 47% of total costs; hence the 20.1% increase contributes 8.43 percentage points to the change in the BRCI (61% of the total increase);
an increase in energy costs of 10.7%, reflecting the impact of rising coal and gas costs on generation costs and higher energy market prices. Energy costs account for 44% of total costs; hence the 10.7% increase contributes 3.90 percentage points to the change in the BRCI (28% of the total increase); and
an increase in retail costs of 18.3%, reflecting a significant increase in estimates of customer acquisition and retention costs. Retail costs account for 9% of total costs; hence the 18.3% increase contributes 1.51 percentage points to the change in the BRCI (11% of the total increase).

The Authority engaged ACIL Tasman (ACIL) to provide expert advice on the cost of energy to be included in the BRCI for 2010-11.

The Draft Decision, reports from ACIL Tasman and several data files relating to the modeling of energy costs can be downloaded below.

Submissions in response to the Draft Decision closed on 12 February 2010. Submissions received can be downloaded below.

The Authority anticipates releasing its Final Decision in late May 2010.

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Notified Electricity Prices 2010-11

Draft Decision

Draft Decision

Draft Decision Data

Submissions