Every five years, Evoenergy prepares a detailed plan about how it will operate, maintain and invest in the electricity network to meet the future needs of Canberrans. This electricity five-year plan is submitted to the Australian Energy Regulator for consideration and approval to determine how costs associated with the electricity network are passed onto consumers. Our current five year plan for 2019–24 is available on the Australian Energy Regulator website.
We’re in the process of planning for the coming five year period for 2024–29, which will start with engaging with the community to find out more about what they want and need from the electricity network, to help shape our plan.
What is in our five year plan?
Our five year plan covers many aspects and details of how we propose to operate and invest in the electricity network, and a central element of the plan is our estimate of the lowest sustainable cost of managing the electricity network in the ACT. This estimate needs to take into account expected growth in the demand for electricity and electricity network connections in the coming five years, as well as managing the network in a way that ensures a quality, reliable, secure and safe electricity supply.
During our planning process we consider:
the expectations and long-term interests of Canberrans
how best to operate and maintain a reliable network cost-effectively
how the network needs to grow to meet demand
network infrastructure that requires replacement how network charges reflect the cost to serve customers, and
how we deliver services to consumers.
The Australian Energy Regulator reviews our plan to determine whether the cost associated with our plan are prudent and efficient.
During their review, the Australian Energy Regulator considers:
Operating expenditure – how efficiently we operate and maintain the electricity network; taking into account our service levels, reliability and safety.
Capital costs – how we plan to invest for expansion of the network to service new developments and replacement of infrastructure within the existing network as they reach the end of their useful lives, including costs of funds and depreciation.
Tariff structure – how we group customers based on common characteristics (for example, residential consumers are distinct from commercial customers), and how we refine our tariffs to increase the cost-reflectivity of the pricing signals we send to customers.
Forecast consumption and demand – how consumers use the network, including the total quantity of electricity transported across the network every year, and peak demand, which is the highest quantity of electricity being transported at a single point in time. Demand is a critical determinant of the level of Evoenergy’s investment in the network.
Framework and approach
The framework and approach is where the Australian Energy Regulator decides which services it will regulate (service classification), and how it controls network charges and the revenue we collect from consumers for offering these services (control mechanisms). Through the framework and approach, the Australian Energy Regulator will set its initial position on the broad nature of how it will regulate Evoenergy.
How we’ll engage with the community
We’ll be engaging with the community across three stages and there are a number of ways you can get involved:
Engagement phase 1
October 2021 – July 2022
Understanding consumer values to inform the draft plan and tariff structure statement.
Engagement phase 2
August 2022 – December 2022
Using the feedback provided, we will produce a draft plan and draft tariff structure statement and come back to the community for more feedback
Engagement phase 3
Post January 2023
After the Australian Energy Regulator has reviewed our proposal, we will consult further on any elements that need further understanding.
For more information about how to get involved and have your say, visit www.engagewithenergy.com.au