Electricity pricing proposals
Every year, electricity distribution businesses are required to submit a pricing proposal that contains the network tariffs they propose to charge their customers to recover their revenues, transmission network charges and costs of jurisdictional schemes.
The AER undertakes a compliance check of the proposals against the National Energy Rules and each distributor’s five-year regulatory revenue determination.
Changes in annual network charges occur due to several factors. They follow the revenue path set out 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.
We publish a Statement of Reasons for each electricity distributor which further explains the annual pricing changes.
Gas annual tariff variations
Each year, gas distribution network service providers submit tariff variation notices to the AER that contains the tariffs they propose to charge customers to recover its revenues for the upcoming year.
We review these variation notices in accordance with their access arrangements, which set out the cost of delivering gas supply to customers over the 5-year regulatory period.
Gas bills are made up of several components including the wholesale cost, retail margins, and distribution charges. Decisions on annual tariff variations relate to the distribution component of the bill.
We publish a Statement of Reasons for each gas distributor which further explains the annual tariff variations.