The Australian Energy Regulator (AER) has approved the electricity distributors’ annual pricing proposals for network charges in 2023-24 following our compliance check of the proposals against the NER and each distributor’s five-year regulatory revenue determination.
Every year the distributors submit a pricing proposal to us that contain the network tariffs they propose to charge their customers to recover their revenues, transmission network charges and costs of jurisdictional schemes.
Electricity bills are made up of the wholesale costs, retail margins, and network charges.
Our annual pricing review relates only to the network charges component of a bill.
Changes in annual network charges occur due to several factors. They follow the revenue path set in the distributor’s five-year revenue determination, plus they include adjustments such as incentive scheme rewards or penalties and adjustments to recover or return any previous under or over‑recovered revenues. They are also adjusted for inflation.
More information on the changes in network charges can be found in our Statement of Reasons, published for each electricity distributor.
The draft default market offer, released March 2023, used network charges from preliminary pricing proposals which included some placeholder inputs. The final default market offer, to be released late May 2023, will use the updated network charges from the approved pricing proposals. The difference in network charges between draft and final default market offer are relatively minor with reductions for Ausgrid and Essential and increases for Endeavour, Energex and SAPN.
The AER acknowledges that energy bills are of 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.