AER approves Victorian electricity network charges for 2020

Most Victorians have been paying less for their electricity poles and wires over the last five years but will see a small increase in network charges in the coming 12 months.

The Australian Energy Regulator (AER) today approved the 2020 network tariffs for Victorian electricity distributors AusNet Services, CitiPower, Jemena, Powercor and United Energy.

AER chair Clare Savage said this year’s price rises should be seen in the context of our current regulatory determination which has delivered savings or stable prices for Victorians.

“Our first principle is that consumers should pay no more than necessary for safe and reliable energy. Over the last five years, most Victorian consumers have paid less or around the same for the network of poles and wires delivering power to their houses and business,” said Savage.

Overall revenues for Victorian electricity distributors have decreased in the 2016-20 period:

  • AusNet by 7.04 per cent
  • Jemena by 2.12 per cent
  • Powercor by 3.79 per cent

Revenues for CitiPower (0.88 per cent) and United Energy (8.32 per cent) increased over the period.

Network charges cover the transmission and distribution costs of delivering electricity to households and businesses. These costs are increasing for each of the Victorian electricity distributors.

Increasing transmission charges in Victoria - representing up to 81 per cent of the price increase - have fed into these 2020 prices.

Some of the reasons for this are rising Victorian land taxes and more power travelling long distances from interstate, which increases costs, have contributed to the rise.

The AER estimates the typical network tariff charge – which is only one part of a household bill alongside wholesale costs, retail margins and other elements - will increase the average bill in 2020 by:

  • AusNet Services (Residential $38.16, Small business $130.02)
  • CitiPower (Residential $26.14, Small business $115.00)
  • Jemena (Residential $37.26, Small business $200.89)
  • Powercor (Residential $46.00, Small business $99.28)
  • United Energy (Residential $53.04, Small business $212.27)

The approved network tariffs take effect from 1 January 2020.

About the AER

The AER works to make all Australian energy consumers better off, now and in the future.

  • We regulate electricity networks and covered gas pipelines, in all jurisdictions except Western Australia. We set the amount of revenue that network businesses can recover from customers for using these networks.
  • We enforce the laws for the National Electricity Market and spot gas markets in southern and eastern Australia. We monitor and report on the conduct of energy businesses and the effectiveness of competition.
  • We protect the interests of household and small business consumers by enforcing the Retail Law. Our retail energy market functions cover New South Wales, South Australia, Tasmania, the ACT and Queensland.
  • We drive effective competition where it is feasible and provide effective regulation where it is not. We equip consumers to participate effectively, including through our Energy Made Easy website, and protect those who are unable to safeguard their own interests. We use our expertise to inform debate about Australia’s energy future.
Sector: 
Segment: 
Issued date: 
11 November 2019
AER reference: 
NR 28/19
Contact: 
AER Media 0466 409 921 media@aer.gov.au