Electricity - Distribution
The Queensland electricity supply industry currently comprises:
- generators, which compete and operate independently - there are three publicly owned generators ( Tarong Energy, Stanwell & CS Energy) and several privately owned generators;
- Powerlink Queensland, which owns and maintains the high voltage transmission grid;
- two distribution businesses - Energex and Ergon Energy have an effective monopoly over the distribution network within their regions;
- Ergon Energy Queensland - a subsidiary of Ergon Energy, which provides retail services to non-market customers that have not entered a negotiated contract; and
- independent retailers.
As Energex and Ergon are the sole distributors of electricity in their supply areas, customers cannot choose an alternate supplier. The Queensland Competition Authority regulates the prices for these services to ensure that they are fair and reasonable, and in addition, the Authority monitors the quality of service provided so that customers have the information to decide if they are receiving an appropriate standard of service.
The Authority's responsibilities in relation to electricity distribution are to:
- act as Jurisdictional Regulator under the National Electricity Rules to regulate pricing for electricity distribution networks and ring fencing between distribution entities and contestable activities;
- make and enforce conduct rules;
- monitor service quality standards of electricity entities; and
- administer the Electricity Industry Code.
Regulatory Framework
The main sources of regulation, as relevant to the Authority’s role in the electricity distribution sector are:
The Electricity Act regulates:
- the contestability timetable;
- authorisations and special approvals;
- pricing and service quality for customers in relation to transmission, distribution and retail functions;
- customer protection, including standard customer contracts and the resolution of disputes under those contracts;
- safety; and
- electricity rationing.
The Electricity Industry Code sets rules governing distributors behaviour regarding:
- the preparation of Network Management Plans;
- the preparation of Summer Preparedness Plans; and
- the reporting of their performance against Minimum Service Standards and Guaranteed Service Levels.
The National Electricity Rules provides for a set of rules governing the:
- National Electricity Market;
- terms and conditions of access and technical standards of access to the transmission and distribution network; and
- methods to be used for pricing network services.
Issues
The Authority's responsibilities encompass the following electricity distribution issues:
