South Australian transmission revenue
A final decision has been reached over various elements of electricity prices in South Australia's electricity transmission revenue.
The Australian Energy Regulator (AER) decided on the revenue proposal for the five year regulatory period spanning July 1 2013 to June 30 2018, from South Australia's principal electricity transmission network service provider.
The final decision lays out the maximum revenue that the service provider can recuperate from its customers over the regulatory period through the transmission network element of a consumer's energy bill.
The transmission network charge tends to make up around eight per cent of the average South Australian retail electricity bill.
The revenue proposal has been under assessment for 11 months, with AER undertaking various consultations and seeking the views of stakeholders.
AER's decision cuts nine per cent from the revenue requirement that was proposed by the transmission network service provider.
AER chairman Andrew Reeves has said that this should not result in any material price increases for the average South Australia residential electricity customers' bills during the regulatory period.
"Having reviewed the proposal, the AER has determined a total revenue cap of $1578 million ($ nominal) to deliver electricity to customers over the regulatory period," said the AER in a statement released April 30.
Mr Reeves also stated that AER's decision supports the long term interests of electricity consumers, while providing adequate revenue for the transmission network service provider, without compromising its reliability, safety or quality of service.
Posted by Charlie Moore