In late 2014, a new National Electricity Rule was introduced, requiring electricity distribution businesses like Endeavour Energy to introduce 'cost reflective' tariffs.
Network tariffs cover the costs of the electricity network, including infrastructure, staff, maintenance of poles and wires and bushfire risk management programs. They make up about 40 per cent of an average residential electricity bill.
In developing our tariffs, Endeavour Energy aims to constrain real long-term average prices by promoting efficient network investment and utilisation.
The AER approved our TSS for 2017-19 in full on 28 February 2017.
This means that from 1 July 2017 to 30 June 2019:
- The vast majority of our residential customers (99 per cent) will be charged a flat rate for their electricity usage regardless of how much electricity they consume or when they consume it.
- Residential customers with a Time of Use meter will have the option of being on either a Time of Use tariff, where they are charged at different rates depending on the time of day, or a flat rate which has the same charge regardless of the time of day.
- Effective 1 July 2018, new customers and those customers who choose to upgrade their connection from single to three-phase, will be defaulted to a Time of Use tariff with the option to opt-out to the flat rate tariff.
In announcing the decision, the AER said the new tariffs would mean NSW consumers will have greater choices to manage their electricity bills, and retailers will be able to develop offers that help consumers get better value from the energy choices they make.
Read the AER’s media release here.
Prior to lodging the statement, we undertook customer and stakeholder engagement, which was acknowledged by the AER. Thank you to all who provided their feedback. As a result of the feedback we received, we developed some key characteristics in framing a TSS so customer interests were at the forefront of our plans – shown below.
The actual network charges will be determined each year through the AER’s annual pricing proposal process (see below) but must comply with the structures set out in our TSS.
AER draft decision
2 August 2016
Endeavour Energy revised Tariff Structure Statement due
4 October 2016
Submissions on AER draft decision due
4 October 2016
Submissions on revised Tariff Structure Statement due
25 October 2016
AER final decision
27 February 2017
2017/18 annual pricing proposal
31 March 2017
AER decision on 2017/18 annual pricing proposal
17 May 2017
The TSS and supporting documents are below.