Today the Australian Energy Regulator approved Evoenergy’s 2021–22 electricity network pricing proposal, including a substantial increase in ACT electricity network charges of around $5 a week for residential customers from 1 July 2021.
The increase is predominantly driven by the ACT’s 100% renewable energy target, which requires Evoenergy to pay large-scale wind and solar generators for the electricity they generate under ACT Government contracts and recover the cost from ACT electricity customers (through energy retailers).
Evoenergy’s General Manager Peter Billing said that as the wholesale price for electricity has changed over time, the payments Evoenergy is required to make to generators have also changed.
“Over the past year, there has been a significant drop in wholesale electricity prices making them much lower than the contract prices the ACT Government established with large-scale generators. This has resulted in significant top-up payments required to cover the difference,” said Peter.
“We understand it can be confusing when wholesale prices are going down and these costs have gone up. The reality is these costs are fixed by contracts whereas the electricity market and the wholesale electricity price moves based on supply and demand.”
“Evoenergy has no control over the long-term contracts with renewable energy generators or the resulting top up payments, however we will continue to work with the ACT Government as part of our legislated responsibility to administer the large-scale feed-in tariff scheme.”
“We know an increase in electricity costs will be difficult for many people, especially for those already doing it tough. I strongly encourage anyone having trouble paying their bill to contact their energy retailer to seek assistance.”
For more information about the electricity network charges and administration requirements for the large-scale feed-in tariff scheme, visit Evoenergy’s electricity network and jurisdictional charges page.
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