Electricity customers pay a distribution network charge for the cost of building, operating and maintaining the electricity distribution network. They also pay a charge for that covers the cost of a smart metering service to measure the amount of electricity being used. Together, these charges account for approximately 36% of a typical electricity bill in AusNet Services’ distribution area.
Every five years, the Australian Energy Regulator (AER) approves the electricity distribution network charges, including:
Victorian distributors have collaborated to start the conversation about network pricing in preparation for 2021 to 2025 pricing submissions due in July 2019.
The conversation started on 1 November 2017 in a joint forum on household electricity pricing. The Victorian Electricity Future Forum was the first in a series of joint engagements where the Victorian distributors will examine network pricing options for residents, and small to medium businesses.
Over the next 12 to 18 months the distributors will seek input and review feedback about pricing principles, the different pricing options available, complementary measures to support pricing, and any relevant issues that should be considered for the five year period up to 2025.
The outcomes of the first forum presented challenges and opportunities when it comes to household electricity pricing and its modernisation, and reforms to support the transition. Stakeholders also indicated five key objectives for distributors to consider in decision making, including: simplicity; efficient and reflective; fairness, consistency and equity; affordability; and recognition of two-way energy flows.
Read or view outcomes of the forum below:
We will be consulting with our customers on pricing options in March 2019, and have published a consultation paper.
AusNet Services’ current five-year regulatory period for electricity distribution runs from 1 January 2016 to 31 December 2020. The approved revenue for this period is explained in the following documents:
Current tariffs are provided in the TSS and Annual Tariff Report here: