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.