Energy Users Coalition of Victoria AER Review AER Review SP Ausnet Revenue Reset SP Ausnet Revenue Reset Draft Decision Forum Draft Decision Forum Presentation by Major Energy Users, Inc by David Headberry 11 September 2007
The change in average tariff The change in average tariff Average charge for TNSP services (real) 12.0 10.0 9.5 9.3 9.1 8.9 8.7 8.4 8.3 8.3 8.2 8.2 8.0 8.1 7.8 $/MWh 6.0 5.9 VC/MWh 5.1 DD/MWh 4.0 consumers pay 2.0 1.3 1.1 0.9 0.8 0.7 0.6 0.6 0.0 2007 2008 2009 2010 2011 2012 2013
Controllable Opex Controllable Opex SPA controllable opex $07/08 80 75 70 $ m p a 65 60 55 claimed SPA table 6.10.1 allowed actual/FC 50 AER DD build up benchmark +2.8%pa PBA Table E5 45 estimated 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
SPA Capex SPA Capex SPA capex, $07/08 160 140 120 100 $ m p a 80 60 claimed allowed 40 actual/FC AER DD table 3 PBA table E2 and E4 20 estimated 0 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 9 9 0 0 0 0 0 0 0 0 0 0 1 1 1 1 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Issues for consumers Issues for consumers � The new tariffs take electricity transmission in Victoria into new highs, and above other states despite it being recognised as the most compact in the NEM. � The tariff charts are based on VENCorp expected (medium) case consumption and ACCC final decision and VENCorp expected revenue � The increase in tariff is due in part to increased demand, yet the pricing approach does little to provide signals for this � The AER does not assess the impact of its decision on consumers, especially between the current and next periods � SPA underspent its allowed opex by $44m in current period. Therefore there is a $25.2m carryover � Corporate overhead is 27% of controllable opex � The actual opex was intended to set the benchmark, but neither PBA or AER looked at this as a benchmark and adding defined step changes � Land tax on easements is a replacement for Smelter levy. Has the AER discussed the burgeoning amount with the Vic gov’t or the premium included for SPA to accept the risk of future changes?
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