Victoria Electricity Network Price Increases
Australian Energy Regulator (AER) has reduced the
potential impact that future distribution prices increases could
have had on Victorian electricity customer had the
network opertaors had their way.
The network operators had wanted to pass on cost increases which would have amounted to over $130 being added to the typical household bill in Victoria ove r the next 5 years.
The AER deemed these pricing demands too aggressive and has elected to reduce the impact down to $82 on average. However, with the Victorian electricity market deregulated as it is, there's no certainty as to how these cost increase will flow through.
Summary of the impacts:
CitiPower - 2011: -1.6% 2012-15: 2.9%
Powercor - 2011: 1.1% 2012-15: 2.5%
Jemena - 2011: 3.1% 2012-15: 2.3%
SP Ausnet - 2011: 5.1% 2012-15: 2.9%
United - 2011:1.2% 2012-15: 2.6%
Average - 2011: 1.8% 2012-15: 2.6%
NB: Based on % change per year
CitiPower- 2011: -$30.80 2012-15: $21.60
Powercor- 2011: $0.50 2012-15: $16.20
Jemena- 2011: $23.90 2012-15: $14.40
SP Ausnet - 2011: $48.00 2012-15: $21.60
United- 2011: $1.80 2012-15: $18.00
Average - 2011: $8.68 2012-15: $18.36
NB: Based on averafe $ change per year between 2012 & 2015
Tim Wolfenden, Director at
MakeItCheaper.com.au comments: "It's a welcome sign that
the AER is standing up for customers and looking to reduce the
impact of future price increases. They've taken the sting out
of the tail of the increases proposed by Victoria's network
operators to the tune of around 40%.
The only concern is whether the holding back of these increases is merely delaying the inevitable - if investment is lower over the next 5 years, then we're just as likely to see more costs being hammered onto customers bills between 2015 and 2020.
With the Victorian electricity market fully deregulated, retailers are capable of passing through all or none of these increases - and some will potentially use these rises as an excuse to pass through an even higher amount.
Choice is key, and it's down to the customer to make this choice. Switch retailers, and move to a business who's going to charge you less for what you consume."