Regulated electricity prices 2012–13

Status
Past review
Final report
31/05/2012

On 8 May 2012, the Minister provided the QCA with an amended delegation which removed the requirement for the QCA to set prices for the residential general supply tariff (tariff 11). The Minister’s covering letter and amended Delegation can be accessed below.

On 31 May 2012, we released the final determination on 2012–13 regulated retail electricity prices (notified prices) for all regulated retail electricity tariffs in Queensland except for the main residential tariff (tariff 11), which as explained above was set by the Minister.

The notified prices for 2012–13 have been influenced by a number of general factors including:

  • further increases in network charges, with Energex and Ergon Energy expected to recover additional revenue from network charges of around15.7% and 11.3% respectively
  • an increase in the underlying cost of energy for small customers of around 43%, primarily due to the carbon tax
  • retail operating costs for small customers remaining largely unchanged
  • the one-off effects of moving from an ad hoc set of tariffs that had evolved over time to a new tariff structure more closely resembling the true costs of supply which will have increased the prices for some tariffs and decreased the prices for others.

Due to the potential impacts on customers and technical issues that distributors need to resolve, we decided to retain a wider range of existing tariffs than we proposed in the draft determination. This will provide time for the distributors to overcome technical constraints and allow many customers time to adjust their consumption to better suit the new tariffs.

The final determination, the Gazette notice of the new prices, and ACIL’s final report and associated cost of energy modelling can be accessed below.

In November 2011 we released a draft methodology paper which outlined our proposed approaches to determining the key elements of regulated retail tariffs and prices. Our consultants, ACIL Tasman (ACIL), also released a report on their proposed approach to estimating energy costs.  We conducted workshops and invited submissions from stakeholders on the paper.

On 30 March 2012, we released the draft determination on regulated retail electricity prices for 2012-13.  The draft notified prices for 2012-13 reflected a number of general factors including:

  • further increases in network charges
  • an increase in the underlying cost of energy, primarily due to the carbon tax
  • the one-off effects of moving from an ad hoc set of tariffs that had evolved over time to a new tariff structure reflecting the true costs of supply.

Unlike previous years under the BRCI where prices for all tariffs were increased by the same percentage, under the new arrangements different tariffs will be impacted differently. Moreover, the QCA was required to change the main residential tariff (tariff 11) from a flat tariff to an inclining block tariff. The impact of this change on households will vary according to their level of consumption.

The draft determination found the carbon tax would increase the typical residential household’s annual bill by around $192.35 (11.2%). In addition, the Commonwealth Enhanced Renewable Energy Target Scheme would add a further $92.80 (5.4%) to a typical residential household’s annual bill.

All documents relating to the draft methodology paper and draft determination can be downloaded below.

We released an issues paper inviting submissions from interested parties on the range of issues we must consider in this review, including in relation to network costs, energy costs, retail costs and the structure of tariffs.

We also released Energex’s proposed network tariff structure for 2012-13 for comment. As noted in the issues paper, these network tariffs are the basis upon which retail tariffs will be constructed.

We received 20 submissions in response to the issues paper and Energex’s proposed network tariff structure.

The issues paper, Energex’s proposed network tariff structure and submissions can be accessed below.

On 13 September 2011, the Electricity Act 1994 (the Electricity Act) was amended to replace the previous Benchmark Retail Cost Index approach to adjusting regulated retail electricity prices with a new price determination process.

The new price determination process is based on a network (N) plus retail (R) cost build-up approach, where network costs are treated as a pass-through and retail costs are determined by the QCA.

Under the 2011 delegation, we were required to publish:

  • a draft methodology paper no later than December 2011
  • a draft price determination on 30 March 2012
  • a final price determination and gazette the retail tariffs no later than 31 May 2012.

On 25 November 2011, we conducted a public workshop to discuss our draft methodology paper and the draft methodology report prepared by ACIL Tasman. The workshop was attended by 36 stakeholders representing a range of organisations. Information and presentations from the workshop can be accessed below.

On 8 May 2012, the Minister provided the QCA with an amended delegation (2012 delegation). The 2012 delegation is consistent with the 2011 delegation, except for the removal of the requirement for the QCA to set prices for the residential general supply tariff (tariff 11). The Minister’s covering letter and amended delegation can be accessed below.

We also received a direction from the Minister under section 253AA of the Electricity Act to advise on the price that would have applied to a flat tariff 11 under the QCA’s N + R approach in 2012-13 and to identify the impact of the carbon tax on tariffs 11, 31 and 33.  We provided this advice on 5 June 2012.

Report and papers

Date
Title Document
25 September 2013 Final report Final Determination pdf, 7.16 Mb
25 September 2013 Notice Gazette Notice pdf, 349.65 Kb
25 September 2013 Consultant report ACIL Estimated Energy Purchase Costs pdf, 962.29 Kb
Date
Title Document
25 September 2013 Draft report Draft Determination pdf, 9.92 Mb
25 September 2013 Consultant report ACIL Estimated Energy Purchase Costs pdf, 2.93 Mb
11 April 2012 Consultant report ACIL contract volume data xlsx, 645.98 Kb
11 April 2012 Consultant report ACIL load data xlsx, 2.96 Mb
11 April 2012 Consultant report ACIL price scenarios xlsx, 365.55 Kb
11 April 2012 Consultant report ACIL median load data xlsx, 834.19 Kb
Date
Title Document
11 April 2012 Submission Agforce pdf, 256.03 Kb
11 April 2012 Submission AGL pdf, 864.78 Kb
11 April 2012 Submission AGL supplementary submission pdf, 224.78 Kb
11 April 2012 Submission Alinta Energy pdf, 846.26 Kb
11 April 2012 Submission Australian Power and Gas pdf, 1.32 Mb
11 April 2012 Submission Australian Prawn Farmers Association pdf, 100.79 Kb
11 April 2012 Submission Australian Sugar Milling Council pdf, 305.65 Kb
11 April 2012 Submission Bundaberg Regional Irrigators Group pdf, 301.26 Kb
11 April 2012 Submission Canegrowers pdf, 375.94 Kb
11 April 2012 Submission Canegrowers ISIS pdf, 1.28 Mb
11 April 2012 Submission Click Energy pdf, 683.37 Kb
11 April 2012 Submission Donhad pdf, 59.50 Kb
11 April 2012 Submission Energex pdf, 624.37 Kb
11 April 2012 Submission Energy Options pdf, 358.27 Kb
11 April 2012 Submission Energy Retailers Association of Australia pdf, 142.17 Kb
11 April 2012 Submission Energy Retailers Association of Australia 1 pdf, 1016.55 Kb
11 April 2012 Submission Ergon Energy pdf, 888.95 Kb
11 April 2012 Submission Growcom pdf, 77.51 Kb
11 April 2012 Submission IOR Terminals pdf, 275.03 Kb
11 April 2012 Submission Local Buy pdf, 391.98 Kb
11 April 2012 Submission Lumo pdf, 674.68 Kb
11 April 2012 Submission Mabb J pdf, 5.86 Kb
11 April 2012 Submission MFS Sugar Limited pdf, 75.23 Kb
11 April 2012 Submission Origin Energy pdf, 643.48 Kb
11 April 2012 Submission Origin Energy supplementary submission pdf, 2.00 Mb
11 April 2012 Submission Pioneer Valley Water pdf, 143.48 Kb
11 April 2012 Submission Power Choice pdf, 10.56 Mb
11 April 2012 Submission QCOSS pdf, 490.54 Kb
11 April 2012 Submission QCOSS supplementary submission pdf, 90.61 Kb
11 April 2012 Submission QEnergy pdf, 338.19 Kb
11 April 2012 Submission QEnergy supplementary submission pdf, 302.52 Kb
11 April 2012 Submission Queensland Aquaculture Industries Federation pdf, 64.42 Kb
11 April 2012 Submission Queensland Consumers Association pdf, 64.49 Kb
11 April 2012 Submission Queensland Farmers Federation pdf, 195.87 Kb
11 April 2012 Submission QUT pdf, 203.63 Kb
11 April 2012 Submission Shopping Centre Council of Australia pdf, 148.36 Kb
11 April 2012 Submission Stanwell Corporation pdf, 88.62 Kb
11 April 2012 Submission Sucrogen pdf, 208.97 Kb
11 April 2012 Submission Sucrogen supplementary submission pdf, 949.85 Kb
11 April 2012 Submission SunWater pdf, 67.76 Kb
11 April 2012 Submission TRUenergy pdf, 281.44 Kb
Date
Title Document
10 December 2011 Other documents Draft methodology paper pdf, 1.98 Mb
10 December 2011 Consultant report ACIL estimating energy purchase costs report pdf, 191.02 Kb
10 December 2011 Consultant report Workshop presentation outline of proposed methodology pdf, 56.38 Kb
10 December 2011 Consultant report Workshop presentation estimating energy purchase costs pdf, 56.77 Kb
Date
Title Document
10 December 2011 Submission AGL pdf, 387.50 Kb
10 December 2011 Submission Alinta Energy pdf, 1.53 Mb
10 December 2011 Submission Australian Industry Group pdf, 452.90 Kb
10 December 2011 Submission Australian Power and Gas pdf, 161.61 Kb
10 December 2011 Submission Bundaberg Regional Irrigators Group pdf, 454.71 Kb
10 December 2011 Submission Bundaberg Walkers Engineering pdf, 1.12 Mb
10 December 2011 Submission Canegrowers pdf, 86.37 Kb
10 December 2011 Submission Chamber of Commerce and Industry Queensland pdf, 1.07 Mb
10 December 2011 Submission CQMS Razer pdf, 14.80 Kb
10 December 2011 Submission Energex pdf, 599.19 Kb
10 December 2011 Submission Energy Retailers Association of Australia pdf, 532.96 Kb
10 December 2011 Submission Ergon Energy pdf, 284.51 Kb
10 December 2011 Submission Growcom pdf, 411.09 Kb
10 December 2011 Submission Lumo pdf, 2.62 Mb
10 December 2011 Submission Momentum Energy pdf, 639.74 Kb
10 December 2011 Submission Origin Energy pdf, 368.07 Kb
10 December 2011 Submission Power Trading Technology pdf, 12.37 Kb
10 December 2011 Submission QCOSS pdf, 309.29 Kb
10 December 2011 Submission QEnergy pdf, 344.11 Kb
10 December 2011 Submission Queensland Chicken Growers Association pdf, 131.73 Kb
10 December 2011 Submission Queensland Consumers Association pdf, 44.88 Kb
10 December 2011 Submission Queensland Consumers Association supplementary pdf, 27.59 Kb
10 December 2011 Submission Queensland Farmers Federation pdf, 104.04 Kb
10 December 2011 Submission Queensland Government pdf, 2.03 Mb
10 December 2011 Submission Stanwell pdf, 140.01 Kb
10 December 2011 Submission Telfer A pdf, 88.04 Kb
10 December 2011 Submission TRUenergy pdf, 366.85 Kb
10 December 2011 Submission UBS pdf, 5.30 Kb
Date
Title Document
25 September 2013 Issues paper Issues Paper pdf, 2.39 Mb
25 September 2013 Submission Energex Proposed Tariff Structure pdf, 652.24 Kb
Date
Title Document
25 September 2013 Submission AGL pdf, 1.13 Mb
25 September 2013 Submission Alinta pdf, 179.77 Kb
25 September 2013 Submission Australian Pensioners and Superannuants League QLD pdf, 220.21 Kb
25 September 2013 Submission Australian Power and Gas pdf, 6.84 Mb
25 September 2013 Submission Bundaberg Regional Irrigation Group pdf, 505.92 Kb
10 May 2019 Submission Canegrowers pdf, 12.72 Kb
25 September 2013 Submission CCIQ pdf, 1.20 Mb
25 September 2013 Submission Council of Ageing pdf, 153.32 Kb
25 September 2013 Submission Donhad pdf, 28.29 Kb
25 September 2013 Submission Electrical and Communications Association pdf, 3.08 Mb
25 September 2013 Submission Energex pdf, 1.33 Mb
25 September 2013 Submission Energy Supply Association of Australia pdf, 44.63 Kb
25 September 2013 Submission Ergon Energy pdf, 1.22 Mb
25 September 2013 Submission Origin Energy pdf, 473.02 Kb
25 September 2013 Submission QCOSS pdf, 385.27 Kb
25 September 2013 Submission Qenergy pdf, 256.72 Kb
25 September 2013 Submission QLD Consumer Association pdf, 43.18 Kb
25 September 2013 Submission Tableland Canegrowers and Mareeba Fruit and Veg Growers pdf, 158.93 Kb
25 September 2013 Submission Telfer Alan pdf, 340.70 Kb
25 September 2013 Submission TRUenergy pdf, 433.29 Kb
Date
Title Document
10 May 2012 Minister’s direction Ministerial direction for advice on cost reflective tariff 11 and carbon tax impacts pdf, 345.63 Kb
10 May 2012 Final report QCA advice to Minister on cost reflective tariff 11 and carbon tax impacts pdf, 227.52 Kb
10 May 2012 Minister’s direction Ministerial direction for advice on residential carbon tax impacts pdf, 85.59 Kb
10 May 2012 Final report QCA advice to Minister on residential carbon tax impacts pdf, 65.95 Kb
Date
Title Document
11 May 2012 Minister’s direction Ministerial delegation May 2012 pdf, 424.36 Kb
11 September 2012 Minister’s direction Ministerial delegation September 2011 pdf, 722.43 Kb