The Australian Energy Regulator (AER) has approved 2021-22 electricity distribution tariffs proposed by Ausgrid, Endeavour Energy, and Essential Energy in accordance with their relevant 2019–24 distribution determinations.
This is the third year of the 2019–2024 determinations for New South Wales (NSW) distributors. The determinations set revenues these distributors can recover to reflect the cost of delivering electricity supply to customers over five years. Each year the NSW distributors submit to the AER for approval pricing proposals that contain the network tariffs they propose to charge their customers to recover their revenues, transmission network charges and the costs of jurisdictional schemes.
In 2021-22, the network tariff component of the typical annual bill compared to the previous year is:
- $18 higher for households and $6 lower for small business for Ausgrid customers
- $24 lower for households and $83 lower for small business for Endeavour Energy customers
- $53 higher for households and $152 higher for small business for Essential Energy customers.
These changes will come into effect from 1 July 2021.
The network tariff increases in the Ausgrid and Essential Energy networks are predominantly driven by increases in transmission network charges. For Endeavour Energy, network tariff decreases are driven by the declining revenue path set in our determination, as well as previous over-recoveries of revenue being passed back to customers. These decreases are partly offset by increased transmission network charges.
More information can be found on the NSW businesses' pricing proposals, our role in reviewing the proposals, and our decision to approve in our Statements of Reasons:
- Ausgrid - Statement of Reasons
- Endeavour Energy - Statement of Reasons
- Essential Energy - Statement of Reasons
Electricity bills are made up of a number of components including the wholesale cost, retail margins, and network charges. This decision relates to the network tariff component of the bill only. What customers ultimately pay will be informed by all bill components.
The AER acknowledges that energy bills are a concern to many households and businesses. We encourage consumers to use the AER’s EnergyMadeEasy website, our free and independent price comparison tool, to find the best deal to suit their energy needs.