The average Queensland household is set to save between $22 and $37 on its annual electricity bill from Powerlink’s Revenue Proposal to the Australian Energy Regulator (AER).
Powerlink has proposed a 28 per cent reduction in the indicative transmission price in the first year of its next five year regulatory period, commencing 1 July 2017.
The transmission price component of electricity bills is also predicted to remain within CPI growth on average over the balance of the regulatory period out to 30 June 2022. The cost of Powerlink’s high voltage electricity grid represents around 9% of the total delivered cost of electricity for the typical Queensland residential electricity consumer.
Powerlink Chief Executive Merryn York said the business had a commitment to putting downward pressure on electricity prices while still achieving reliability of supply outcomes.
“Powerlink is focused on doing its part in the overall electricity supply chain to deliver better value to consumers and customers,” Ms York said.
“Our approach is to lower costs by minimising investment in our network using alternative practices while still maintaining the reliable supply consumers and customers expect.”
Since submitting the proposal in late January, Powerlink has focused on continuing to engage with the AER and other key stakeholders to explain its approach and seek feedback on its Revenue Proposal.
Ms York said the AER public forum in March provided the opportunity for the AER, its Consumer Challenge Panel and other key stakeholders to present their views and raise questions.
“We received feedback at the public forum and from our stakeholder meetings on a range of topics including support for having aligned our proposal with the AER’s guidelines and approach,” Ms York said.
“Queries were also raised about the returns that can be earned by network businesses, our demand and energy forecasting and if our forecast expenditure could be lower.
“Stakeholder involvement is an important part of this process and our focus in the next few months is to continue engaging with stakeholders on the proposal. We will also keep working with the AER and respond to information requests to ensure all of the necessary information is available to assess our Revenue Proposal.”
