In April 2019 the Victorian Minister for Energy, Environment and Climate Change advised the AER and the Victorian distribution businesses of the government’s intention to change the timing of the annual Victorian electricity and gas network prices changes. The change would bring Victoria into alignment with the other NEM jurisdictions to operate on a financial – rather than calendar – year basis.
The change, which requires passage through Victorian parliament to give effect through legislation, is intended to extend the current regulatory control period by six months and change the commencement of the next regulatory control period to 1 July 2021. Due to unforeseen delays in passage of the legislation, the AER was not able to make a final revenue determination on the six-month period on 30 September 2020. Due to these delays, and proceeding on the basis that the legislation will be in place in October 2020, Powercor is expected to submit a draft pricing proposal covering the six-month period on or before 13 October 2020.
We have provided further information on this upcoming process, including an indicative timetable, as an update to the Powercor determination.
On 13 October 2020, Powercor submitted to the AER a draft annual pricing proposal for its Victorian electricity distribution network. The draft pricing proposal relates to network charges for Powercor's users for the six month extension period 1 January 2021 - 30 June 2021.
On 2 November, Powercor submitted to the AER a final annual pricing proposal for its Victorian electricity distribution network, in line with our six-month extension variation decision.
On 11 November 2020, the AER approved Powercor's annual pricing proposal for the period 1 January 2021 to 30 June 2021. This was after assessing the pricing proposal as compliant with the National Electricity Rules and the AER's six-month variation decision for Powercor.