CitiPower - Impact of rate of return on allowed revenues - 20 January 2016

On 6 January 2016, CitiPower submitted its revised proposal to the AER. The revised proposal documents are attached below.

While the details of CitiPower's revised regulatory proposal can be found in these documents, we have sought to provide greater transparency and accessibility by publishing a summary of the Victorian electricity distribution businesses’ revised proposals (also attached below). It provides an overview of the proposed revenue amounts, and how they differ from the businesses’ initial proposals and our preliminary decisions. In addition, the summary includes a breakdown of the building block components of the revised proposals, and estimates of the residential bill impacts of the revised proposals and—by way of comparison—our preliminary decisions.

The bill impact estimates are for standard control and advanced metering infrastructure (AMI) services only. Other factors that may affect a customer’s electricity bill—such as transmission network costs, wholesale prices and retail costs—are held constant. Our bill impact estimates are indicative because distribution network charges form only part of the final bill paid by customers (which varies by distribution business). Individual customers' actual bills will depend on their specific usage patterns and the structure of their retail tariffs. The estimates are based on an average of standing offers at June 2015 on Switchon comparison tool using annual bill for typical consumption of 4690 kWh per year.