ECA insights on the Energy Queensland revenue proposals AER - PowerPoint PPT Presentation

ECA insights on the Energy Queensland revenue proposals AER pre-determination conference Shelley Ashe Associate Director, Networks

Overview 2

1 Our vision for the market 3

Ensuring that consumer values, priorities and preferences are understood and given explicit consideration in every decision is critical for the effective operation of the system and for maintaining community support for transition. 4

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Our vision for the market Affordable ECA promotes these three advocacy principles as the basis for better consumer outcomes. Better consumer Optimised outcomes Individualised AER pre-determination conference – Energy Queensland – October 2019 6

2 What consumers are telling us 7

Satisfaction with electricity of Queensland households are satisfied with the overall value for money of their electricity service Source: Energy Consumer Sentiment Survey June 2019 AER pre-determination conference – Energy Queensland – October 2019 8

Household consumer confidence in long-term outcomes 48 % 55 % 39 % Are confident that future Are confident there will Are confident of better technological advances will be more reliable value for money improve their ability to services in the future manage their energy use and costs AER pre-determination conference – Energy Queensland – October 2019 9

“The latest bill for October was $6,194, I mean who can afford that? It’s just getting beyond a joke.” Paul Small business owner Mt Isa 10

3 Evidence gaps 11

Network investment in Queensland Source: ACCC, Retail Electricity Pricing Inquiry – Final Report, Figure D AER pre-determination conference – Energy Queensland – October 2019 12

Area of Evidence gap Assurance or reduction expenditure Operating • Efficient base year • Demonstrate that the Productivity Savings can be expenditure • Maintenance costs. achieved. (opex) The AER accepted the proposals. Replacement • Replacing more than peers, • Explain its governance and assurance processes capital despite the younger age of the to ensure that “not one more dollar than needed, expenditure network. not one day earlier than necessary” is spent. (repex) • Robust framework to quantify replacement decisions. ICT capital • Deliverability • Demonstrate how it can achieve the ICT program; expenditure • Benefits to consumers • develop a narrative about the benefits its ICT • High costs program will deliver for consumers; and • review costs. Tariff • Complicated tariff designs • Respond to the AER’s guidance; Structure • Irregular proposal process • demonstrate impacts analysis. Statement • Unclear purpose Solar Bonus • Who will fund it? • Guidance from the Queensland Government on Scheme future funding of the Scheme. 13

4 Where to from here? 14

A Suite 2, Level 14, 1 Castlereagh Street, Sydney NSW 2000 T 02 9220 5500 W energyconsumersaustralia.com.au @energyvoiceau /energyconsumersaustralia /energyconsumersaustralia ABN 96 603 931 326