tariff structure statement overview your power, … · november 2015 tariff structure statement...

NOVEMBER 2015

TARIFF STRUCTURE STATEMENT OVERVIEWYOUR POWER, YOUR SAY

A NOTE TO OUR CUSTOMERS

“ We’re committed to delivering better value for customers by driving efficiency reforms without compromising safety or services.”

In late 2014, a new National Electricity Rule was introduced, requiring electricity distribution businesses like Endeavour Energy to introduce ‘cost reflective’ tariffs.

Network tariffs cover the costs of the electricity network, including infrastructure, staff, maintenance of poles and wires and bushfire risk management programs. They make up about 40 per cent of an average residential electricity bill.

In developing our tariffs, Endeavour Energy aims to constrain real long-term average prices by promoting efficient network investment and utilisation.

Our draft Tariff Structure Statement (TSS) – required under the new Rule – sets out how we will do this for the period from 1 July 2017 to 30 June 2019.

The key objective of our draft TSS is to ensure that our customers have a clear understanding of:

• why we are proposing changes to our tariffs• our proposed network tariff structures• how our tariffs promote efficient network investment and utilisation• the impact to customers of our proposed changes• how we plan to transition customers to these new network tariffs

Rod Howard Deputy Chief Executive OfficerEndeavour Energy

Our networkEndeavour Energy is responsible for building, operating and maintaining an electricity distribution network which serves 2.3 million people across Sydney’s Greater West, the Blue Mountains, Southern Highlands, Illawarra and South Coast of NSW. We build, operate and maintain a safe and reliable electricity distribution network for some of the largest and fastest growing regional economies in NSW.Our network area includes Sydney’s North West and South West Growth Centres – areas similar to Wollongong and Canberra in size, and earmarked by the NSW Government for current and future housing.

Between them, these centres cover 27,000 hectares and will be home to more than 500,000 people in more than 180,000 dwellings over the next 5-10 years.

We are one of three electricity distribution businesses operating in NSW, along with Ausgrid and Essential Energy.

Our customer focusWe’re committed to delivering better value for customers by driving efficiency reforms without compromising safety or services. We aim to: • be safety focused• be customer centred• operate a sustainable network• employ a capable and committed workforce

ENDEAVOUR ENERGY FAST FACTS• Serve: 2.3 million people across 24,500 sq km

• Network customers: 934,000 homes and businesses

• Major substations: 185 • Distribution substations: 31,600

• Power lines: 45,500 km

• Power poles: 429,000

arkPa

ParkNarellan

Picton

Moss Vale

Ulladulla

Nowra

Shellharbour

Springhill

Katoomba

Bowenfels

Kandos

Glendenning

South Windsor

PenrithHuntingwood

Hoxton

rramattaKings P

Northernregion

Central region

Southernregion

Pacific Ocean

UNDERSTANDING OUR NETWORK COSTS AND TARIFFS

Our tariffs recover the efficient costs we are allowed by our regulator, the Australian Energy Regulator (AER).

Every five years, the AER assesses our forecast expenditure for building and maintaining our network and approves efficient and prudent allowances for both capital and operating expenditure, as well as a revenue allowance for each year of the regulatory period. Our current five-year regulatory period runs from 1 July 2014 through to 30 June 2019.

We recover the approved costs of delivering electricity to our customers through network tariffs. The total revenue we can receive from all network tariffs is “capped” by the AER.

How our network costs are recovered from customers

TRANSMISSIONLINESCarry electricitylong distances

DISTRIBUTIONLINESCarry low voltageelectricity to consumers

POWER PLANTGenerateselectricity

TRANSFORMERConverts low voltageelectricity to highvoltage for efficienttransport

SUBSTATION TRANSFORMERConverts high voltage electricity to low voltagefor distribution

KEY:

CUSTOMERSHomes, offices andfactories use electricityfor lighting and heatingand to power appliances

Endeavour Energy

Endeavour’s role in supplying your electricityEndeavour builds and operates a ‘poles and wires’ network that transports electricity from large generators, via high voltage transmission systems, to homes and businesses in our network area.

We also provide a ‘two-way’ service, which enables customers with solar photovoltaic roof panels to export electricity generated into our network. More than 10 per cent of our residential customers have solar PV installed.

This means if we collect more revenue in a financial year because customers use more energy than we expected, then we must repay the amount we over-recover to customers. This over-recovery is included in calculating the tariffs for subsequent years. The reverse also applies.

We establish our network tariffs every 12 months in a pricing proposal that is approved by the AER. Our tariffs must comply with the structures set out in our draft TSS and are set to allow recovery of our efficient costs in line with the regulatory determination.

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The services covered by our draft TSSOur draft TSS describes the network tariffs that are classified as direct control services under the National Electricity Rules. Direct control services comprise Standard Control Services and Alternative Control Services.

Standard Control Services relate to the distribution network. Costs are recovered through general network charges. Alternative Control Services mainly comprise metering, public lighting and ancillary network services. These services are recovered through specific user charges.

How customers are chargedNetwork and metering charges are passed on to electricity retailers, who in turn charge customers through their electricity bills. The electricity bills customers receive from retailers do not generally specify our network and metering charges, so customers are unlikely to see our prices on their electricity bills. This makes it difficult for us to send price signals to customers without the assistance of retailers.

The range of network costs and their contribution to a typical residential bill are shown in the diagram below. The costs in the green circles are added together in a customer’s bill to give the total network charge. The costs in the blue circles are added to a customer’s bill by the retailer.

AERAUSTRALIAN

ENERGY REGULATOR

Direct regulation of our services, costs and prices by the AER

Distribution network services - the “poles and wires”

Metering - Type 5 & 6 meter installation, maintenance and

meter reading

Public lighting - Streetlights and

public lighting attached to electricity poles

Ancillary Network Services - Other fee-

based and quoted services

Standard control services - costs are recovered through network charges

Alternative control services - costs are recovered through specific user charges

Covered by this TSS

$

CLIMATE CHANGE FUND

LEVY (INCLUDES SOLAR BONUS

SCHEME)

4%

GENERATION COSTS

20%TRANSMISSION

COSTS

7%

DISTRIBUTION COSTS

39%

Endeavour Energy’s costs

STATE AND FEDERAL

GOVERNMENT GREEN

SCHEMES

15%

RETAILER COSTS

15%

+

YOUR BILL

$

2


Ways of charging for electricity useGenerally, there are six different types of tariffs that can be used to charge customers for their electricity use.

Tariff componentsEach tariff is made up of one or more of the following components:

A fixed charge component - an annual supply charge that is applied to each connected premises to which electricity is delivered. The amount does not vary with the amount of electricity a customer uses. This component is charged on a pro-rata basis aligned to the customer’s billing cycle.

An energy charge component - a charge that is applied to each unit of electricity consumed in cents per kilowatt hour (kWh). Depending on the particular tariff, the consumption charge may also vary with the time of day.

A demand charge component – a charge that is applied to a customer’s electricity maximum demand level or capacity requirement in dollars per kilovolt–ampere (kVA) or dollars per kilowatt (kW), depending on the tariff.

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Metereology

Basic Accumulation

Basic Accumulation

Basic Accumulation

Interval/Smart Meter

Interval/Smart Meter

The importance of meter type

Not all meter types can be made available to all customers – the type of meter a customer has plays a significant role in the types of tariffs that we can offer. There are many different types of electricity meters, however, they can be broadly classed into the following three groups:

1. Basic accumulation meters – These meters measure only the total amount of electricity consumed over a period (including time of use periods if programmed that way).

2. Interval meters – These meters record how much electricity is used in every 30 minute interval and the associated demand. This allows customers to select a tariff that has different rates for usage at different times of the day. These meters can be remotely or manually read.

3. Smart meters – These meters record customer usage and demand in real time and are remotely read in 30 minute intervals. Smart meters can be linked to in- home devices that allow customers to make informed decisions about their electricity consumption.

Most residential and small business premises within our network area have basic accumulation meters. This limits our tariff options for the bulk of our customers to just three.

THE NEED FOR TARIFF REFORM

The drivers of tariff reformThe way in which customers are using our network is changing. It has become more important to make sure that network prices provide signals that allow customers to make informed choices about how and when to use the network based on the costs of providing the services they use.

This has the potential to result in lower costs for customers where network investments can be avoided due to customers responding to price signals. It is important that changes in tariffs are moderately paced to give customers time to adapt and to ensure that vulnerable customers are not left behind.

There are four main drivers of tariff reform:

1. Moving our tariffs to cost reflective levels

Our network costs are largely fixed, but the fixed charge component of our tariffs is quite low, reflecting that usage charges have historically been set above efficient levels. This means many of our customers are paying more in electricity usage charges than they should be.

2. Consumption levels and network utilisation

Our network is necessarily built to safely and reliably supply the maximum demand for electricity that customers require – the peak load. However, the peak load is only required for only a handful of days each year. This means that for most of the hours in a day (and for most days of the year) our network assets are largely under-utilised.

The figure below indicates how two consumers can currently consume the same amount of power, and therefore pay the same network charges, but their impact on the network can be very different.

Flat load customer

Dem

and

Dem

and

3kW

6am 10pm 6am 10pmConsumption through the day

Spare network capacity

Consumes 6,000kWh per year

Flat load customers free-up network capacity which defers investment

Peak load customers exert more pressure on the network which drives

further investment

Peak load customer7kW

Consumption through the day

Consumes 6,000kWh per year

4

3. Providing appropriate price signals for emerging and improving technologies

In the past, the electricity network was simple, with energy flowing in one direction through a centrally planned system. Today, the network is far more complex.

Solar PV generation has allowed consumers to become electricity generators. The current network system is more dynamic and integrated with energy flowing in opposite directions at different times of the day.

The future network will become even more dynamic as emerging technologies are refined and marketed widely. Consumers will be able to store their own generated energy with battery systems and better manage their electricity consumption through the use of smart meters and energy management systems.

These changes will have significant impacts on our electricity distribution system.

Electricity distributors must ensure they continue to provide clear communication to customers on the true cost of their network use, enabling them to make efficient choices about the technologies they adopt and how they use our network.

4. Government policies and regulations

Regulation at both a State and Federal level impacts our tariff setting. New markets and technologies are challenging the current regulatory landscape and we expect continuing developments.

So, we need to structure our tariffs to provide long term benefits to our customers through:

• better aligning our tariffs to our cost drivers so that customers pay a price that more accurately represents the actual costs they impart on the network.

• influencing customer behaviour in a way that encourages better utilisation of our existing network to ensure augmentation takes place where it is truly efficient to do so and where customers are willing to pay for this.

• encouraging customers to remain connected to the network where it is efficient and practical to do so.

Our proposed tariff structures, outlined in our draft TSS, fulfil these requirements.

ENGAGING OUR CUSTOMERS, RETAILERS AND STAKEHOLDERS

Customer engagement is central to the process of thinking about appropriate tariff structures. We need to understand how customer use of our network is changing, and to fully appreciate how changes in tariff structures will affect different customer groups. This is particularly challenging for network businesses given the dominant role that retailers play in customer relationships.

It’s also important that customers are able to understand and contribute to the changes proposed.

We have developed our draft TSS in consultation with retailers, consumer and environmental advocacy groups and regulators. Our key stakeholder groups are shown below.

Our engagement program included, but was not limited to:• presentations and forums to key stakeholders on our

proposed tariff strategy including our customer consultative committee

• discussions with industry regulators about our plans• five roundtable sessions with specific stakeholder groups

including retailers, vulnerable customer and environmental advocacy groups

• analysis of our existing research and engagement initiatives

• liaison with industry counterparts to leverage existing customer research specific to this subject

• one-on-one interviews with peak stakeholder advocates• bi- lateral conversations out of session with stakeholders• development of an issues paper setting out our thinking

on tariffs and active promotion seeking feedback from the community.

What retailers saidEndeavour Energy consulted with retailers through roundtable sessions, the tariff structure issues paper, and one-on-one interviews. Retailers were interested to better understand Networks NSW preference for declining block tariffs given other states shift to demand tariffs. Some retailers expressed a preference for networks to transition more quickly to more cost reflective tariffs. Another drew on its experience interstate where smart meters had been rolled out extensively and expressed concern that customers found it difficult to engage on tariffs, despite a significant investment in consumer education. Others recognised that metering needed to be in widely available in NSW in order to practically consider demand and time of use tariff structures. Most retailers said the simpler the tariff structure, the greater the likelihood they would pass on the price signal to the customer. There was little support for networks to introduce a solar export tariff or social tariff.

Origin Energy was the sole retailer to respond to the issues paper and said…”we support the approach taken by Networks NSW to apply declining block tariffs at this point in time. We believe this establishes a strong base to further evolve its reform program over time.”

Endeavour Energy recognises the significant role of retailers in educating customers and in passing through price signals to customers and believes that its existing tariff structures will provide a platform to transition to more efficient tariff structures over time.

Electricityretailers

Endeavour Energy Customer ConsultativeCommittee

CALD* advocates

State government

Industry regulators

Large and small customers, including CALD* customers

Consumer advocates

Environmental advocates

*CALD - Culturally and Linguistically Diverse communities

Other stakeholders

Local government

5


The key points from our engagement include:What we will do 1. Key elements of our proposed tariff structures for residential and small business customers are aligned with other NSW networks to meet retailers’ preferences.

2. We’ve kept our tariffs simple and easy to understand so that retailers can in turn promote them to customers.

3. We plan to continue our declining block tariff structure for residential customers given the combination of relatively stable demand, capped revenue and lack of appropriate metering for customers. This approach will also avoid price volatility for customers. We recognise retailers are generally supportive of this tariff but consumer and environmental advocates would prefer us to offer a flat tariff and an opt-in demand tariff to ‘future proof’ against a possible reversal in consumption trends.

4. We will more actively promote with both retailers and customers our current opt-in time of use tariff for both residential and small commercial and industrial customers.

5. We will use the Ethnic Communities Council’s community engagement guide to better reach CALD communities.

6. We will work with retailers and consumer advocates to better understand the impact of declining block tariffs on low-income, low-energy consumption households and on the design of our future tariff strategy to address this customer segment.

7. We will commit to continuing this style of engagement given the preferences expressed by most stakeholders.

8. We will transition our customers to our proposed cost reflective structures over a three-to-five year period.

What we won’t do9. We are not proposing location specific tariffs.

10. We are not introducing a solar tariff. This was opposed by peak consumer and environmental advocacy stakeholders and some retailers.

11. We are not proposing social tariffs given stakeholder feedback, but do recognise our significant role in electricity affordability. We remain committed to reforms to keep downward pressure on network electricity prices for the benefit of families and businesses.

12. We are not introducing an opt-in demand tariff for our residential and small business customers.

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“Customers are mainly interested in how much they have to pay.”You’ll need an education program to inform customers.

“Low income, low consumption customers may be worse off by declining block tariffs.” You need to understand the impact of the changes.

“Time of use tariffs need more promotion.”

Most customers don’t even know they are an option.

“Networks shouldfocus on their costs,not social tariffs.”

Disadvantaged customers need support but it’s not through special tariffs.

“Customers should be given the choice to opt-in to different tariff structures.”

You will need to take this into account.

Our future tariff strategy

As a result of engagement, we have developed some key characteristics to consider in framing our future tariff strategy.

Transparency: • Ensure tariff structures are clear and easily

understood by customers.

Predictability:• Protect customers from bill shock by providing

certainty around pricing.

Efficiency:• Efficient and reflect the true costs of providing

the service.

Equity: • Ensure that customers pay their fair share.


Next stepsIt’s clear that there will need to be a significant education program if customers are to feel empowered to understand tariff choices. We think the responsibility for this rests with all sectors of the industry.

We’ll continue consultation with stakeholders after we submit our draft TSS to the AER in November 2015. We will also provide feedback to all stakeholders who have participated in conversations and responded to our issues paper.

We also plan to evaluate our engagement program using the Quality Assurance Standard for Community and Stakeholder Engagement launched in May 2015 by the International Association for Public Participation.

We will also continue the engagement process during the remainder of the regulatory period as we commence preparations for our five year TSS which takes effect on 1 July 2019.

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WE ARE HERE

2013/2014 SEPT/OCT 2015 NOV 2015 JUL 2016 SEP 2016 APR 2017 JUL 2017

Discussion on tariff reform begins

• conversations through workshops, roundtables and consultations by Networks NSW and the other network businesses

• feedback to stakeholders on their submissions to the issues paper

• complete quantitive and qualitive research

• embed engagement on tariffs in the community engagement plan

• assess and review

• conversation with customers continues

Draft TSS and overview submitted to AER

More detailed focus on tariff reform including:

• face-to-face interviews with peak advocacy groups

• release of an issues paper/invitation to comment via Have Your Say online portal

• campaign inviting feedback from LGAs and ASPs

• vulnerable customer forum

• roundtable for retailers

• three roundtables for consumer and environmental advocacy groups

• social and mainstream media campaign inviting customer feedback

Prices go live

AER final decision on TSS

Revised TSS submitted to AER

AER preliminary decision on TSS

“Traditional engagement methods don’t reach CALD communities.”You’ll need community outreach programs with retailers.

“As a retailer we generally support your preference for declining block tariffs given metering issues in NSW.”

“Most people don’t understand time of use tariffs.”

They could save most households money.

“We don’t want a separate charge for solar.”

Customers who export electricity shouldn’t be penalised.

“We want a demand tariff in NSW.”

Other states have them and residential customers should have this option.

OUR TARIFF SETTING METHODOLOGY

Tariff structuresOur tariff structures need to meet specific requirements set out in the Rules. The objective of the new Rule is the network prices we charge each customer should reflect the efficient costs of providing network services to that customer.

Specifically, each tariff must be based on the long run marginal cost (LRMC) of providing the service to which it relates to the retail customers assigned tariff.

What are ‘efficient prices’?Efficient pricing preserves the LRMC (cost of consuming or supplying one more unit) while also allocating costs that have already been incurred (residual costs) in a way that will provide price stability and take into account the impact on customers.

Efficient pricing needs to signal to customers the future network cost of consuming the next unit of electricity. Where there are no network constraints (such as in off-peak times) this cost will be very low. However, if the network is reaching capacity at peak times, it means we need to augment the network to continue to meet demand. This additional cost should, under the Rules, be reflected in the variable usage charge of the tariff structure.

To encourage customers to make more efficient use of the network (make better use of any spare capacity), more efficient price structures would have:

• a larger fixed component, to better reflect the costs of building and maintaining the current network

• lower variable charges (reflecting the cost of future increases to the network from additional consumption).

Balancing efficient prices with the impact of change on customersOur tariff transition strategy must balance:

• prices that promote efficient use of the network under the new Rules, (within the constraints of existing customer meter technology)

• the impact of price changes on customers.

By sending more accurate pricing signals to customers through our tariffs, we hope to encourage a more informed consumption of electricity. This will allow us to deliver only that augmentation (growth) expenditure that customers require and are willing to pay for.

Adhering to the pricing principlesWe have adhered to the pricing principles of the Rules in setting our tariff structures. We have also aimed to:

• ensure our tariffs are simple and transparent

• fairly allocate costs between customers based on their share of relevant network costs

• maintain predictable and relatively stable prices over time

• empower customers to make efficient electricity consumption choices

• alleviate or defer unnecessary capital expenditure that would otherwise increase prices to customers.

These goals reflect the requirements of the National Electricity Law and the National Electricity Rules, and also our understanding of what customers want from us.

The concept of marginal cost and more specifically LRMC, is explored in detail in our TSS.

8

Less efficient allocation of residual costs

LRMC componentAccess charges

Access charges

Usage charge

Usage charge

Residual componentTariff component

$ per annum;$ per MWh

$ per annum;$ per MWh

Tariff component

More efficient allocation of residual costs

OUR TARIFF CLASSES

Rather than setting specific prices for every customer in our network, we group customers with similar characteristics together into a tariff class. This ensures that customers with similar consumption profiles and network demand pay similar prices.

Our tariff classes for standard control services remain unchanged.

Our tariff classes are set on the basis of:

• the nature of the customers’ connection to the network, i.e. whether they are high or low voltage customers or whether they are metered or unmetered; and

• the nature and extent of customers’ usage, i.e. above or below a specified level of consumption per annum.

Customer Type Tariff Class Connection Characteristics

Residential and small to medium enterprise businesses

Low Voltage Energy LV Connection (230/400 V)Total electricity consumption, per financial year, is less than 160MWh

Larger commercial and light industrial

Low Voltage Demand LV Connection (230/400 V)Total electricity consumption, per financial year, is greater than 160MWh

Industrial High Voltage Demand HV Connection (12.7 kV SWER, 11 or 22 kV)

Industrial Subtransmission Demand ST Connection (33, 66 or 132 kV)Distributors Inter-Distributor Transfer Demand Distributor Transfer

Unmetered Unmetered Supply Unmetered

A summary of our network tariff classes is set out below.

9

POWER PLANT

TRANSMISSION LINES

GENERATION TRANSFORMER

SUB- TRANSMISSION TARIFF CLASS

•�Large�business�subtransmission

•�Subtransmission connection�to�the�network

•�Billed�on�usage�and�demand

INTER- DISTRIBUTER

TRANSFER DEMAND TARIFF

CLASS

•�Distribution business

HIGH VOLTAGE DEMAND TARIFF

CLASS•�Large�business�high�voltage

•�High�voltage connection to�the�network


LOW VOLTAGE DEMAND

TARIFF CLASS

•�Business•�Low�voltage connection�to�the�network


LOW VOLTAGE ENERGY TARIFF

CLASS

•�Residential�and�small�business

•�Low�voltage connection�to the�network

•�Billed�on�usage

UNMETERED SUPPLY TARIFF

CLASS

•�Public�lighting•�Traffic�lights

DISTRIBUTION SUBSTATION

TRANSFORMER

HIGH VOLTAGE DISTRIBUTION LINES

LOW VOLTAGE DISTRIBUTION LINES

ENDEAVOUR ENERGY

KEY:

HV SUBSTATION

TRANSFORMER

OPEN

OUR PROPOSED TARIFF STRUCTURES

Our planned tariff structures outlined in our draft TSS will be mainly similar to current tariffs and, importantly, compliant with the specific requirements in the regulatory framework that target more efficient use of network capacity.

This consistency with current tariffs reflects two key issues – ensuring certainty and stability for our customers, but also the limitations of current metering technology across the network. The large presence of basic accumulation meters within our network area severely limits the type of tariffs we can offer at this stage.

The existing pricing structures provide a mechanism for transition to more efficient tariff structures into the future.

Our primary default tariffs for 2017-19 will be largely consistent with those currently in place:

• declining block tariff for residential consumers

• inclining block tariff for small to medium commercial customers

• demand based tariffs for large commercial customers and

• site specific tariffs for our industrial customers.

Details of these tariff structures are set out in the following section.

Key changes to tariff structuresWhile our tariffs will be largely consistent with current tariffs, there will be some changes proposed to structures.

• We are proposing to increase the price differential in the residential declining block tariff at the same time as increasing the fixed and first block components. This will ensure that prices for the highest block are not set above long run marginal cost, and so do not distort customer usage. It will also increase recovery of the residual costs in the less price sensitive band and within the fixed charge.

• We are also proposing to maintain the current inclining block structure for small to medium commercial customers, but to increase the point at which the second block starts. This will incentivise customers with very high consumption to move to more efficient tariff structures, while not creating distortions for other customers.

Time of use tariffsEndeavour Energy will continue to offer time of use tariffs for residential and commercial consumers, which provide more efficient signals for the use of the network.

Offering a suite of tariffs and reducing obstacles to changing tariffs allows customers to make their own decisions about when to change tariffs. This provides an appropriate means of transition to more efficient tariffs.

Demand tariffEndeavour Energy will not introduce a demand charge component as part of its tariffs in this two-year draft TSS period, but will investigate this tariff for introduction in the next regulatory period.

A range of consumer and environmental representatives raised the introduction of demand tariffs during our consultation process.

We have listened to these groups and will do further work towards a demand tariff for our next TSS period.

As canvassed previously in this document, demand tariffs are reliant on interval meters to be useful and effective for customers. The vast majority of meters across our network are accumulation, with interval metering yet to be rolled out across the network area.

There are also IT system requirements to support the introduction of demand tariffs and to manage the large quantities of data. We will more fully assess these requirements over the next three years.

As well, we recognise that demand-based charging can have a significant impact on households and particularly on more vulnerable customers. Any transition to demand-based charging needs to be carefully managed.

The design of effective demand tariffs is a complex exercise. By waiting, we will be able to build on the experi-ence of the Victorian distributors in identifying the best way to design a demand charge, as well as observing how consumers and retailers react to the charges.

The current TSS applies for two years. Endeavour Energy will have the opportunity to propose a new TSS to cover the regulatory period from 2020/21. This will give us an opportunity to continue the dialogue with customers, and revisit this issue.

10

OUR NETWORK TARIFF STRUCTURES

Residential customers proposed network tariff structures

Small business customers proposed network tariff structures

Tariff Tariff Structure Charging parameter

Residential Block Tariff (default tariff)

Fixed Network access charge reflecting a fixed amount per day

Energy Three tier declining block tariff

Residential Time of Use (opt in tariff)


Energy Peak, shoulder and off-peak rate based on energy consumed in each period


General Supply Block Tariff (default tariff)


Energy Two tier increasing block tariff

General Supply Time of Use (opt in tariff)



Our network tariff structuresOur actual network tariffs will be determined each year through the AER’s annual pricing proposal process, but must comply with the structures set out in our TSS. A summary of our proposed network tariff structures for the 2017-2019 period are set out in the following tables.


LV TOU Demand Fixed Network access charge - fixed amount per day


Demand Demand charge based on the maximum half-hour kVA measured in the peak period during the month. High and Low season months apply

LV TOU Demand Transition Tariff

Fixed Network access charge - fixed amount per day


Business customers proposed network tariff structures


Controlled load 1 Fixed Network access charge - fixed amount per day

Energy Charge applied to controlled energy consumption where energy consumption is controlled by our equipment so that supply may not be available between 07:00 and 22:00

Controlled load 2 Fixed Network access charge - fixed amount per day

Energy Charge applied to controlled energy consumption where supply is available for restricted periods not exceeding a total of 17 hours in any period of 24 hours

Controlled load customers proposed network tariff structures

11


Large business customers proposed network tariff structures


ST TOU Demand Fixed Network access charge - fixed amount per day



Individually Calculated ST TOU Demand




Large business subtransmission customers proposed network tariff structures


ST TOU Demand Fixed Network access charge - fixed amount per day



Individually Calculated ST TOU Demand




Inter-distributor tariff class


Individually Calculated TOU Demand





Unmetered Block Tariff

Energy Two tier increasing block tariff

Unmetered Energy Tariff

Energy Flat charge applied to all energy consumption.

Unmetered supply tariff class

12

HAVE YOUR SAY

What happens next?

• We look forward to hearing more from our stakeholders and will continue to work closely with them on tariff reform

• The AER will make a preliminary decision on our TSS in July 2016

You can provide feedback on our draft TSS in a number of ways.

Contact us directly via the details below.

Email: [email protected]: 133 718 (business hours)Visit: www.endeavourenergy.com.auFollow us: @endeavourenergy.com.au

Interpreter service: 131 450

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