Jemena - Tariff structure statement 2017-20

Sector: 
Segment: 
Status: 
Region: 
Commencement date: 
25 September 2015
Effective date: 
1 January 2017
Contact: 
AER General inquiries AERInquiry@aer.gov.au
AER reference: 
58268

Overview

On 24 August 2016, we released our final decision on Jemena's 2017-20 Tariff Structure Statement proposal. The approved tariff structures will be in place for the 2017-20 period.

On 7 November 2016, the AER approved amendments to AusNet Services' approved 2017-20 tariff structure statement. This was to rectify a mis-description of tariff classes and consumption thresholds that appeared in AusNet Services initial and revised tariff structure statement and which also appeared in the AER's final decision. Although the changes are administrative only, the amendment was necessary to ensure that AusNet Services' annual pricing proposals could comply with its tariff structure statement.

The amendments are to table 5-1 on page 51 of the marked up copy and to a paragraph under the heading Defining medium businesses on page 45 of the marked up copy of the Amended AER final decision.

Order in Council - AMI Tariffs Amending Order 2017

On 12 September 2017, the AMI Amending (AMI Tariffs) Order was gazetted. Distributors' tariff structure statements must comply with this Order. This has the effect of allowing medium-sized customers to opt-out of a cost reflective tariff from 1 January 2018. Jemena has submitted a revised tariff structure statement to reflect this change.  We have approved the amended proposals.

Background

The Australian Energy Markets Commission made a series of changes to the pricing rules in November 2014. These originated in recommendations from their earlier Power of Choice review that were then actioned into rule change proposals from governments. Broadly, these new rules aim to achieve three objectives:

  • Better signals of the cost drivers of distribution networks.
  • The explicit consideration of the impact of changing tariffs, as part of a stakeholder dialogue based approach to their design and implementation.
  • Transparency and greater certainty as to the tariff strategies that will be employed during a regulatory period.

The AER is required under these new rules to review how distributors complied with the new pricing rules in deciding whether to approve the proposed Tariff Structure Statement.

On 25 September 2015 we received Jemena's Tariff Structure Statement proposal for the 2017-2020 period.

On 22 February 2016, we released our draft decision on Jemena's 2017-20 Tariff Structure Statement proposal. This decision was in response to the announcement on 21 December 2015 by the Minister for Energy and Resources of her intention to require Victorian distributors to implement changes to distribution network pricing arrangements. This has the effect of requiring that cost reflective tariffs be introduced in Victoria on an opt-in basis only.

On 29 April 2016 we received Jemena's revised proposal.