The AER has today published a decision to refuse to approve requested amendments by Ergon Energy and Energex to remove introducing optional demand tariffs and flexible load tariffs to their 2025–30 tariff structure statements.
The two Queensland electricity distributors made their request in May this year under clause 6.18.1B(d) of the National Electricity Rules (NER).
Under the NER, a distributor can request changes to its tariff structure statement if it can demonstrate that an unforeseen event has occurred that is outside its control to warrant tariff structure statement amendments. It also must demonstrate that the amended tariff structure statement better meets the pricing principles than the existing tariff structure statement. This is a high threshold to meet.
Following consultation, we assessed that the request to remove the optional tariffs did not meet the threshold. Our decision, published today, outlines our reasoning.
As a result of our decision, the current approved tariff structure statements for Ergon Energy and Energex, which commenced on 1 July 2025, will continue to apply for the duration of the 2025-30 regulatory period.
This means that electricity retailers operating in Queensland, on behalf of their residential and small business customers, will have access to optional demand tariffs from 1 July 2027, and access to optional flexible load tariffs from 1 July 2028.
A demand tariff is a tariff that includes a charge based on the customer’s highest electricity demand during a specified period.
A flexible load tariff operates similarly to a controlled load tariff. It offers a fixed charge rebate to customers with eligible appliances who give Ergon Energy or Energex control of the appliance.