Implementing tariff reform

This webpage provides materials to assist stakeholders in understanding some of the implications of tariff reform. We also have separate information focused on tariff trials.

Explanatory notes

These explanatory notes are supplements to our TSS determinations. They explain our approach to and expectations of various aspects of TSS proposals submitted to us by distributors.

AER - Explanatory note - Tariff reform and integrating DER ( PDF 212.02 KB )

AER - Explanatory note - Network tariffs and long run marginal cost ( PDF 225.16 KB )

Electric vehicles

We held a workshop to explore the integration of electric vehicles, including charging stations, in Victoria during the 2021–26 regulatory period. Summaries of this engagement are provided below.

AER - Electric vehicles - Presentations from the workshop on EV tariffs in VIC ( PDF 2.57 MB )

AER - Electric vehicles - EVs are well placed for tariff trials in this reset period in VIC ( PDF 184.89 KB )

Retailers

Distribution network tariffs are charged to the retailer. The final price charged to electricity end users is determined by how the retailer responds to the price signals in the network tariff and how it repackages the network tariff in its retail offer. Retailers may package network tariffs into their retail offer in a way that mimics the network tariff price signals. Or they may innovate by offering customers combinations of retail tariffs and storage or other demand management options.

To help us understand how retailers are responding to more cost reflective network tariffs in South Australia and Queensland, AER staff undertook a series of interviews with large retailers, new entrants, and other service providers. The following document provides a summary of our key findings from these interviews and lessons such as the types of tariffs that customers are likely to understand.

AER - Retailers - Understanding the impact of network tariff reform on retailers in SA and QLD ( PDF 708.51 KB )

AER staff also commissioned a report from Baringa on the emerging ‘prices for devices’ retail products where a retailer (or third party) manages customers' smart devices to respond to price signals and charges a simple, discounted retail structure. We also provide our thoughts on the potential of these services below.

AER - Prices for devices - There is value in prices for devices offers ( PDF 228.16 KB )

Baringa - Prices for devices - Value of optimised flexible DER ( PDF 5.45 MB )