Regulator approves 2019-20 network tariffs for SA Power Networks, Energy Queensland

grid, network tariff

The Australian Energy Regulator (AER) has today approved the 2019–20 network tariffs as proposed by SA Power Networks (SAPN), as well as the 2019–20 network tariffs as proposed by Energy Queensland (EQ).

For SA Power Networks, network tariffs will rise by 10.2 per cent, ensuring that SAPN has sufficient revenue to provide safe and reliable network services in the 2019-20 financial year.

These network tariffs implement the last year of the AER’s 2015 decision that set the maximum revenue SAPN could recover from its customers over the five-year period 2015-20.

In that decision the AER determined that SAPN was entitled to recover $3.8b from its customers to operate a safe and reliable network. This amount was about 10 per cent less than what the company was entitled to recover over the 2010-15 period and 15 per cent less than what SAPN had requested. Today’s decision on SAPN’s 2019-20 network tariffs will result in no increase in overall revenue for SAPN for 2015-20.

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For Energy Queensland, Network tariffs will fall by 0.1 per cent for Energy Queensland (Energex and Ergon).

These network tariffs implement the last year of the AER’s 2015 decision that set the maximum revenue Energex and Ergon Energy can recover from its customers over the five year period 2015-20.

In that decision the AER determined that Energex was entitled to recover $6599.9 million from its customers to operate a safe and reliable network. This amount was 5.86 per cent less than what the company was entitled to recover over the 2010-15 period and 16.2 per cent less than what Energex had requested. Today’s decision on Energex’s 2019-20 network tariffs will result in no increase in overall revenue for Energex for 2015-20.

In that decision the AER determined that Ergon Energy was entitled to recover $6295.4 million from its customers to operate a safe and reliable network. This amount was 3.94 per cent less than what the company was entitled to recover over the 2010-15 period and 19.3 per cent less than what Ergon had requested. Today’s decision on Ergon’s 2019-20 network tariffs will result in no increase in overall revenue for Ergon for 2015-20.

The decisions do not impact the DMO prices the AER set last month for customers on standing offers in South Australia and Queensland.

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