NSW regulator IPART’s 2024 Annual Report finds that customers on demand tariffs face annual bills $200 to $300 higher than flat-rate or time-of-use plans
A long overdue reset to the tariff reform agenda promises better outcomes for energy consumers. Plus a new report finds that retailers really do charge residential customers more than business.
Electricity bills comprise wholesale costs, network charges, and retail margins.
As energy consumers, we're generally not that interested in the detailed breakdown between these components — we only care about the final bill price. But each component matters and contributes toward our bills.
The Australian Energy Regulator (AER) today approved the electricity distributors’ annual pricing proposals for network charges in 2023-24.
Distributors operate as regulated monopolies, with network pricing governed by the AER. Electricity distributors must present their network pricing proposals to the AER every year for approval, with the new pricing rolling out on 1 July every year.
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The AER annual pricing review relates only to the network charge component of a retail electricity bill.
Here's a quick summary of the estimated increase or decrease in the network component of the 'typical bill' for Residential and SME Business customers in each zone.
State
Distribution zone
Residential
SME business
NSW
Ausgrid
$24.55
$52.92
NSW
Endeavour Energy
21.56
$45/76
NSW
Essential Energy
$90.97
$167.18
VIC
Citipower
$2.39
$7.14
VIC
Jemena
$33.70
$120.39
VIC
United Energy
$18.99
$34.92
VIC
Powercor
$31.14
$44.10
VIC
Ausnet Services
$29.63
$66.64
QLD
Energex
$39.31
$42.04
QLD
Ergon
-$2.23
$9.67
SA
SA Power Networks
$12.54
$58.56
TAS
TasNetworks
$17.40
$41.65
ACT
Evoenergy
-$257.31
-$760.55
NT
Power and Water Corporation
$211.44
$187.10
The most notable price change for the coming year is in ACT Evoeneregy, where network pricing is estimated to decrease by $257.31 for typical residential bills, and by a whopping $760.55 for SME.
The decrease in revenue is predominantly due to the operation of the ACT government’s large-scale feed-in tariff jurisdictional scheme. Evoenergy has typically recovered costs from its customers in the past under the scheme but this year it does not need to recover costs because the scheme is in surplus. This is partially offset by higher-than-forecast inflation.
NSW regulator IPART’s 2024 Annual Report finds that customers on demand tariffs face annual bills $200 to $300 higher than flat-rate or time-of-use plans
A long overdue reset to the tariff reform agenda promises better outcomes for energy consumers. Plus a new report finds that retailers really do charge residential customers more than business.
The Federal Government is funding $300 toward household energy bills in the 2024-25 financial year. Most households will receive quarterly rebates of $75 that will appear in the bills. Here’s everything you need to know.
Instead of spending $2.8bn to fundamentally improve retail energy dynamics through the electrification of Australian homes, we're giving $3.5 bn of public money directly to energy retailers under the guise of consumer bill relief.
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Richard Foxworthy
