The Australian Energy Regulator (AER) has approved SA Power Networks (SAPN) 2021-22 electricity distribution tariffs in accordance with its 2020–25 distribution determination.
This is the second year of the 2020–2025 determination for SAPN. The determination sets revenues to recover the cost of delivering electricity supply to customers over five years. Each year SAPN submits to the AER for approval a pricing proposal that contains the network tariffs it proposes to charge its customers to recover its revenues, transmission network charges and the costs of jurisdictional schemes.
In 2021-22, the network tariff component of the typical annual bill for SAPN customers is $5 lower for households and $20 higher for small business, compared to the previous year. This will come into effect from 1 July 2021.
SAPN has set network tariffs that result in a marginal decrease for residential customers and a marginal increase for small business customers. Overall cost movements reflect increases in the cost of transmission, the decreasing revenue path set in our determination, as well as previous over-recoveries being passed back to customers.
More information can be found on SAPN’s pricing proposal, our role in reviewing the proposal, and our decision to approve in our 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.