Victoria Tariff Change-2021

Thu, 04 Feb 2021 16:44:32 +1100

The Australian Energy Regulator (AER) conducts a compliance check annually to ensure that distributors comply with the distribution determination price controls and that the total revenue recovered from consumers is no more than required for a safe and reliable electricity supply. As a process, AER requires distributors to submit a pricing proposal each year for the next regulatory year. Distributors provide detailed information on network tariffs along with the eligibility criteria with respect to each network tariff.

We, at Empower, have performed a detailed analysis on network costs AER approved for distributors in Victoria which was effective from 1 January 2021. The new distribution charges will be valid for 6 months until 30 June 2020, as AER changes for the first time to review Victorian distributor rates on 1 July each financial year in line with other AER states.

The following table presents the average network price changes for various tariffs under respective distributors*.

For the first six months of 2021, when compared to the changes for half of 2021, the network component of the typical bill will drop by:¹

$110.38 for small businesses on the Ausnet Services network
$140.35 for small businesses on the United Energy network.
$158.30 for small businesses on the Jemena network.
$90.77 for small businesses on the CitiPower network.
$18.18 for small business on the Powercor network.

While the drivers for the reduction in distribution charges vary by respective networks, one of the main reasons for the lower charges is the lower revenue allowances for the distribution charges set by the AER as part of the related determination for the six month period.

The electricity invoice consists of several cost components including wholesale, network , environmental and retail. Hence, it is important to note that the estimated reduction in electricity cost is based on the changes in distribution cost only and that the retailers may repackage tariffs and other movements may be observed in other components.

Reference links

1. Australian Energy Regulator's communication

2. Ausnet pricing proposal

3. United Energy pricing proposel

4. Jemena pricing proposal

5. CitiPower pricing proposal

6. Powercor pricing proposal

Further Information

Victoria Network Tariff Changes

Mon, 04 Feb 2019 14:30:11 +1100

We, at Empower, have performed a detailed analysis on network costs AER approved for distributors in Victoria which was from effective 1 January 2019. The following table presents the average network price changes for various tariffs under respective distributors.

Distributor	Tariff	Variation	Comment
Ausnet	Small C&I tariffs (<160 MWh)	5.6% increase	Average in total cost
Ausnet	Medium Business (160- 400 MWh)	6.35% increase	Average in total cost
Ausnet	Large Low Voltage (>400 MWh)	5.87% increase	Average in total cost
United	Small Single Rate (20-40 MWh)	3.24% increase in fixed charge, 8% decrease in summer usage charge and 12.6% increase in winter usage charge
United	Time of Use (20-160 MWh)	4.96% increase	-Average in total cost (4.90% increase in demand costs). - UE has 50% revenue from energy charges and other 50% from demand charges.
United	Low Voltage Medium (40-400 MWh)	Anytime usage charge decreases by 37.66% while summer and non-summer demand charges increase by 111.9%.	UE has 75% revenue targeted from usage energy charges and 25% from demand charges for low voltage medium 1 rate tariff.
Jemena	Small Business (<40 MWh)	0.9 % decrease
Jemena	Large Business low voltage (40-80 MWh/(80-220 MWh)	1.4% decrease
Jemena	Large Business high voltage( 220-600 MWh)	1.7 % decrease
CitiPower	Non-Residential Single rate (<60 MWh)	3.45% increase	Increase of $5 in fixed charge only. Usage and demand charges remains same.
CitiPower	Medium business cost reflective (>60 MWh)	25% increase in fixed charges, 108.7% increase in summer and non-summer demand charges. Peak usage charge decreases by 22.17%. Off peak usage increases by 0.45%.
CitiPower	Medium business opt-out (<160 MWh)	25% increase	Increase of $200 in fixed charge only. Less than 0.5% increase in usage charges.
CitiPower	Large Low Voltage	1.19% decrease	Average in total cost
Powercor	Non-Residential Single rate (<60 MWh)	6.25%	Increase of $10 in the fixed charge. Less than 1% decrease in usage and demand charges.
Powercor	Medium business cost reflective (>60 MWh)	22.2% increase in fixed charges, 101% increase in summer and non-summer demand charges. Peak usage charge decreases by 22.2%. Off peak usage remains same.
Powercor	Medium business opt-out (<160 MWh)	22.2% increase	Increase of $200 in fixed charge only. Less than 0.5% increase in usage charges.
Powercor	Large Low Voltage	3.8 % in fixed charge and 2.56% decrease in usage and demand costs.	Increase of $300 in fixed charge.

Further Information

Empower - Smarter Energy Savings - Blog #Distributor

Victoria Tariff Change-2021

Reference links

Victoria Network Tariff Changes