The Australian Energy Regulator (AER) has today approved the 2019–20 network tariffs as proposed by Energy Queensland (EQ).
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.
Today’s decision does not impact the DMO prices the AER set last month for customers on standing offers in Queensland.
Network tariffs are one component that make up a retail bill. Other retail bill components are forecast to go down over the year starting from 1 July 2019, essentially offsetting the increase in network tariffs. Therefore the AER would expect retailers to take this into account when developing their market offers going forward.
Notwithstanding this, the AER acknowledges that affordability continues to be a concern for Queensland households and businesses. It’s important, more now than ever, for customers to understand what’s out in the market and shop around for the best deals using our independent EnergyMadeEasy website.
The approved network tariffs will take effect from 1 July 2019.