Future network tariffs
Ergon Energy is continuing to seek customer and stakeholder input as we progress our future network tariff strategy.
In recent years there has been a major shift in the way our customers use the electricity network. In response, we are changing the way we charge for the use of the network, to ensure we can continue to meet everyone's needs into the future for the best possible price.
These charges make up about half of the average retail electricity bill.
Why these reforms? Watch this short video to learn more.
At Ergon Energy, we're changing the way we charge to use the electricity network.
And the big question everyone is asking us is why?
In short, it's because the way our customers are using the network is changing. And we want to ensure we can continue to meet everyone's needs into the future, for the best possible price.
Consider this. Our network forms part of the biggest electricity grid in the world. Capable of reaching the moon and back, it delivers energy at the speed of light and is truly an engineering masterpiece.
For decades, it's reliably delivered electricity to homes and businesses across our vast state.
Now, thousands of customers are exporting solar electricity back into the grid and the whole system is becoming more of a two way street. So much so that in some areas, when the sun's shining, more energy is being exported along the lines than delivered.
Adding to this, the use of the network during peak periods has continued to be disproportionately high.
Over the years we've worked hard to ensure our network can meet the changing needs of our customers… enhancing their lifestyles 24 hours a day, 7 days a week.
However, the way we charge has not kept up, which has contributed to electricity prices rising…
It's also led to more changes to the way our customers use electricity and to how we manage it. We want to do even more to keep costs down and we think changing the way we charge will help with this.
We're also looking ahead. In the future we expect further change with new electricity supply options and energy efficient technologies. Which is a good thing for our customers and regional Queensland!
That's why we're embracing change. So that our customers can continue to use the network in new and better ways…with the responsibility for the costs shared in a way that's fair and equitable.
We're doing this by introducing a range of new, smarter network tariffs. These tariff reforms will give greater choice and control, with prices that better reflect how different customers use the network differently, which is vital, as network charges account for about half of the average electricity bill.
Rest assured, these reforms will not increase the money we're allowed to collect for the use of the network overall. This is set in advance, independently by the Australian Energy Regulator.
Over time, by better aligning our costs with our customers' choices, we hope to bring costs down for everyone. So whether you use the network a little or a lot, make your own electricity, export it or store it, we're working to ensure that you can do so for the best price possible.
That's why we're opening the lines of communication now and making the changes gradually, to ensure they can be understood and embraced.
For more information visit us online.
Find out more
We have consulted with our customers to help develop our Tariff Structure Statement, an outline of our network pricing structures and indicative rates out until 2020.
To find out more read our Tariff Structure Statement or review the other material available in earlier consultations.
Network tariff reform journey
Our network tariff reform journey commenced in 2013 with a comprehensive consultation process, leading to a number of tariff changes to date.
We have refined our network tariff reform path for 2016 out to 2020.
Find out more about our network tariff reform journey.
Jan 2013 - Independent experts developed options with support of targeted stakeholder engagement
Jun 2013 - Launched initial public consultation
Aug 2013 - Submissions reviewed and tariff options developed
Nov 2013 - Proposed reform pathway with indicative 2014-15 prices released for second round of consultation
Apr 2014 - Revised tariff structures emerge. Presented 2014-15 network tariffs to AER for approval
Jul 2014 - New network tariff structures and 2014-15 rates implemented
Dec 2014 - Mar 2015 - Consulted on tariffs/prices for 2015-16 and longer-term network tariff reform pathway (two stage consultation)
Feb - Mar 2015 - Submissions reviewed and with additional engagement activity, our network tariff strategy was further refined
May 2015 - Presented 2015-16 Pricing Proposal to AER for approval, based on revenue allowance for 2015-20
Jul 2015 - New network tariff structures and 2015-16 rates implemented
Jul - Aug 2015 - Consulted on proposals/outstanding matters under consideration in order to refine our pathway for our Tariff Structure Statement
Nov - Proposed indicative structure and prices for each year to 2020 in our Tariff Structure Statement
Each year - Undertake ongoing consultation in line with the Tariff Structure Statement. Present Pricing Proposal to AER annually for approval with any change of direction.