Review of Electricity Pricing and Tariff Structures
Stage 1
In Stage 1 of the review, the Authority was asked to examine the existing Benchmark Retail Cost Index (BRCI) methodology for setting notified retail electricity prices and to consider alternative approaches. The Authority was also asked to examine existing retail tariffs and consider whether they are cost reflective, provide appropriate signals to customers and what alternative tariff structures might be better.
A copy of the Ministers' Direction Notice and a letter from Minister for Natural Resources, Mines and Energy and Minister for Trade regarding the review can be downloaded here.
The Authority released a Request for Comments Paper on Stage 1 of the review on 26 June 2009. To assist stakeholders in their consideration of options and approaches, the Authority also released an Information Paper summarising the approaches to electricity price regulation adopted in other jurisdictions.
In response to its Request for Comments Paper, the Authority received 15 submissions.
On 18 August 2009, the Authority released its Draft Report and invited further submissions from stakeholders. The Authority received 13 submissions.
The Authority released its Final Report on Stage 1 of the review on 8 September 2009. The Authority's conclusions were that:
- the current BRCI methodology has a number of flaws;
- existing tariffs and prices are unlikely to fully reflect the costs of supply, at least not for each individual tariff group and do not provide good signals to customers regarding the costs of their electricity use. However, the scope for change is limited by existing metering equipment; and
- an alternative approach proposed by the Authority would offer significant improvements over the existing BRCI methodology.
A number of important aspects of detail remain to be fully developed in the Authority's proposed alternative methodology. However, the Authority has consciously provided only high-level detail on its proposed new framework, with a view to fleshing it out with stakeholders during the consultation process should the Government decide to adopt the proposed new framework and give the Authority the task of determining new prices under that framework.
All documents in relation to Stage 1 of the review can be downloaded below.
Reports/Papers
Submissions
Stage 1 - Draft Report
- Jackgreen (Aug 09) (PDF, 35KB)
- AGL(Aug 09) (PDF, 425KB)
- Australian Power and Gas (Aug 09) (PDF, 1.3MB)
- Chamber of Commerce & Industry Queensland (Aug 09) (PDF, 290KB)
- Ergon Energy Corporation Ltd (Aug 09) (PDF, 295KB)
- Energex (Aug 09) (PDF, 240KB)
- Energy Australia (Aug 09) (PDF, 260KB)
- Energy Retailers Association of Australia Ltd (Aug 09) (PDF, 75KB)
- Integral Energy (Aug 09) (PDF, 1.3MB)
- Origin Energy (Aug 09) (PDF, 180KB)
- Queensland Consumers Association (Aug 09) (PDF, 65KB)
- TRUenergy Australia Pty Ltd (Aug 09) (PDF, 100KB)
- Queensland Council of Social Service (Aug 09) (PDF, 165KB)
Stage 1 - Request for Comments Paper
- Origin Energy – Supplementary (Jul 09) (PDF, 85KB)
- AGL - Further Response (Aug 09) (PDF, 80KB)
- Energy Retailers Association of Australia (Jul 09) (PDF, 1.4MB)
- AGL (Jul 09) (PDF, 169KB)
- Queensland Council of Social Service (Jul 09) (PDF, 91KB)
- Integral Energy (Jul 09) (PDF, 3.39MB)
- Australia Power & Gas (Jul 09) (PDF, 1MB)
- Origin Energy (Jul 09) (PDF, 208KB)
- Energy Supply Association of Australia (Jul 09) (PDF, 41KB)
- Martin Chambers (Jul 09) (PDF, 42KB)
- Energex (Jul 09) (PDF, 749KB)
- Ergon Energy (Jul 09) (PDF, 269KB)
- EnergyAustralia (Jul 09) (PDF, 2.2MB)
- TRUenergy (Jul 09) (PDF, 49KB)
- Financial Counsellors' Association of Queensland (Jul 09) (PDF, 66KB)
