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Review of Electricity Pricing and Tariff Structures

Stage 2

In Stage 2 of the review, the Authority has been asked to examine alternative retail tariff structures which may assist in the long term management of peak demand and provide an incentive for customers to use electricity more efficiently.

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.

On 11 September 2009, the Authority released a Request for Comments Paper inviting submissions from interested parties. In response, the Authority received 10 submissions. The Request for Comments Paper and submissions received can be accessed below.

The Authority engaged McLennan Magasanik Associates (MMA) to provide expert advice in relation to some aspects of the review.

On 3 November 2009, the Authority released its Draft Report for Stage 2 of the review. In response to the Draft Report, the Authority received 13 submissions. The Authority's Draft Report, the draft report from MMA and submissions received in response to the Draft Report can be accessed below.

On 30 November 2009, the Authority provided its Final Report on Stage 2 of the Review to the Government. Consistent with the findings in its Draft Report, the Authority’s conclusions were that:

  1. retail tariffs should be made as cost reflective as possible;
  2. network and retail tariffs should be aligned; and
  3. a voluntary time-of-use tariff be introduced for those residential customers with interval meters.

In its Final Report, the Authority also recognised that adding a seasonal component to some tariffs could be warranted.

The Authority's preferred approach to achieving these objectives would be to develop a new set of cost reflective tariffs rather than to amend the existing tariff schedule.  However, should the Government choose to retain the existing tariff schedule, some improvements could be achieved by consolidating a number of existing tariffs, removing obsolete tariffs and rebasing prices to reflect costs.

The Authority's Final Report on Stage 2 of the Review and the final report received from MMA can be accessed below.

Reports/Papers

Submissions

Stage 2 - Draft Report

Stage 2 - Request for Comments Paper

Adobe Reader is required to open and print Portable Document Format (PDF) files and is free to download from: http://www.adobe.com/products/acrobat/readstep2.html.

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Modified: 2 Dec 2009
Queensland Competition Authority
Level 19, 12 Creek Street
Brisbane, Queensland
Australia 4000
Phone: +61 (7) 3222 0555
Fax: +61 (7) 3222 0599