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Electricity network prices

Evoenergy's schedule of electricity network charges provides prices and rules that apply:
for, or in connection with, the use of the electricity network
for the provision of metering equipment, meter reading and data forwarding
for miscellaneous services such as temporary connections, energising or de-energising a site, or upgrading to a 3-phase connection at the customer's request.

The 2017-18 prices are valid from 1 July 2017 and the 2018-19 prices are valid from 1 July 2018. Accounts issued on or after this date will be charged on a pro-rata basis.

Evoenergy electricity network prices 2017-18
Evoenergy electricity network prices 2018-19 - Effective 1 July 2018
Statement of tariff classes and tariffs 2017-18
Statement of tariff classes and tariffs 2018-19 - Effective 1 July 2018
Changes to the Evoenergy connection service charges
Changes to the connection charges policy FAQ
Connection Policy
Connection service charges for major new connection enquiries and applications

Pricing Review for the ACT Electricity Network

New network pricing requirements in the National Electricity Rules require all electricity distribution businesses to align network tariffs to the underlying costs of providing network services. Each distribution business is required to submit a Tariff Structure Statement (TSS) that seeks to provide our consumers and stakeholders with clear and accessible information about network tariffs and how these may change to benefit consumers. The Australian Energy Regulator approved our Revised TSS and Overview  on 28 February 2017.

The first TSS continues the series of network pricing reforms by Evoenergy (formerly AAD) and covers the period to 30 June 2019. It moves our network tariff structure substantially along the cost reflectivity spectrum by introducing new demand tariffs for residential and small business customers. The changes to the tariff structure are designed to increase cost-reflectivity, not to increase revenue, as our revenue allowance is set by the Australian Energy Regulator for each five year regulatory control period.

Changes from 1 December 2017

The penetration of remotely read metering technology (or smart meters) from 1 December 2017 will provide consumers with information about energy usage including demand and consumption. Customer will be better able to make more informed consumption choices, providing greater control over electricity bills.. To assist customers to benefit from the installation of smart meters, Evoenergy has introduced new highly cost reflective, demand tariffs for residential and business customers. Specifically, customers with a ‘smart’ meter from 1 December 2017 will be assigned to either the new residential or commercial kilowatt (kW) demand tariffs by default, and they will be able to opt-out to the Time-of-Use tariffs (or the KVA demand or capacity tariffs for low voltage commercial customers).

New Demand Tariffs

The new demand tariffs include a fixed charge, an energy consumption charge and a peak demand charge. While most customers are familiar with fixed and energy consumption charges, the peak demand charge may be new to customers. The peak demand charge is based on a customer’s maximum demand within a peak demand period during each calendar month.  The peak demand period is set to coincide with times of the day when the network experiences peak demand. For residential customers, the peak period is between the hours of 5-8pm each day, and for commercial customers, the peak period is between 7am-5pm weekdays.

In the past, electricity tariffs for small customers have been based on consumption rather than demand.  One way to explain the difference between demand and consumption is by using an analogy of a river flowing under a bridge.  The volume of water that flows under a bridge is analogous with electricity consumption, while the highest level reached by the river during a period of time (i.e. one calendar month) is analogous with maximum electricity demand.

Figure 1 provides an example to show how a customer may have several peaks during a calendar month – some of these peaks may occur during the peak period of the day, and others may not. A customer’s highest (half hourly) demand period that occurs during the peak period, within a single calendar month, constitutes the basis for the demand charge of the demand tariff. Figure 1 identifies several maximum demand periods in the calendar month for two different hypothetical customers – ‘high peak Harry’ and ‘flat load Phil’. For ‘high peak Harry’, the maximum half hourly demand is 3.5 kW for the month. For ‘flat load Phil’, the maximum half hourly demand is lower at 1.5 kW for the calendar month.

Figure 1: Example of two consumers’ half hourly maximum demand (in peak period) each day of a calendar month (kW)

This maximum half hourly demand (within the peak periods of a calendar month) is multiplied by the demand charge and then the days in the calendar month to calculate the demand charge for the calendar month. The peak demand is the highest demand recorded over a 30-minute interval during a “peak period” during a calendar month billing period. An example of the demand charge calculation is outlined in the Figure 2 below.

Figure 2: Examples of calculation of daily residential demand charge

High peak ‘Harry’

  1. Apply maximum demand to the demand charge to calculate Harry’s daily demand charge.

    (3.5kW x $0.15 = $0.525 per day)

  2. Apply daily maximum demand charge to calendar month

    ($0.525 x 30 days = $15.75 per month)

High peak ‘Harry’ pays $0.525 per day, each day of that month, for the demand component of his bill. In a 30 day calendar month billing period, Harry’s demand charge is $15.75.

Flat load ‘Phil’

  1. Apply maximum demand to the demand charge to calculate Phil’s daily demand charge.

    (1.5kW x $0.15 = $0.225 per day)

  2. Apply daily maximum demand charge to calendar month

    ($0.225 x 30 days = $6.75 per month)

Flat load ‘Phil’ pays $0.225 per day, each day of that month, for the demand component of his bill. In a 30 day calendar month billing period, Phil’s demand charge is $6.75.

Calculation of Network Demand Tariff

The fixed component of the bill is calculated as the fixed charge (33.79 cents/day) multiplied by the number of days in the period. As shown in Figure 3, the fixed charge of the network demand tariff is $123 per year (33.79 cents x 365 days).

The energy consumption component of the bill is calculated as the energy charge (3.68 cents/kWh) multiplied by the amount of electricity used in the period. Figure 3 shows that for residential customer who uses 7,000 kWh per year (a typical residential customer), the energy charge of the network demand tariff is $258 per year (3.68 cents x 7000kWh).

The demand component of the bill is calculated as the demand charge (15.1 cents/day/kW) multiplied by the maximum half hourly demand during the peak period within a calendar month, multiplied by the number of days in the period. Figure 3 shows that for residential customer who has a consistent maximum demand of 4.3 kWs each calendar month of a year (a typical residential customer’s maximum demand), the demand charge of the network demand tariff is $237 per year (15.1 cents x 4.3 kW x 365 days). While it is unlikely that a customer will have a consistent maximum demand each calendar month, this assumption has been used to simplify the calculation.

The network components of the demand tariff are passed through to retailers. The retail components are then added to the network components. Customers’ bills are a combination of both network and retail components.

Figure 3: Calculation of Network Demand Tariff (2017/18, excluding GST)

Note: Calculation assumes consumption of 7,000 kWh per year and maximum demand of 4.3 kW each month.

How to Manage Electricity Bills

By making some changes to electricity usage, customers can make a difference to their electricity bill. To reduce your electricity bill, you may choose to use electrical appliances outside the peak period. For example, many electrical appliances have timers which means you may be able to set your dishwasher or washing machine to run outside the peak demand window.

Alternatively, you could spread out the use of electrical appliance over the peak demand period, rather than have many appliances on at one time. For example, rather than turning on several appliances at one time (during the peak period), customers may choose to turn on electrical appliances consecutively. This change in habits will reduce the demand placed on the network during peak periods, leading to lower network costs due to deferral of network investment in the future. This saving in network costs will result in lower electricity bills for customers.

Assignment to New Demand Tariffs

The introduction of the new demand tariffs will be a gradual process as it applies incrementally from 1 December 2017, as smart meters are installed. From 1 December your retailer will be responsible for installing electricity meters instead of the distributor. For more information about smart meters, contact your retailer. Examples of ways in which customers will be automatically assigned to the new demand tariff are below.

1. Residential and low voltage commercial consumers who move into new premises and are connected with a smart meter, will default to a demand tariff with an opt-out provision to the time-of-use (TOU) tariffs.

2. When an existing customer has their meter replaced with a smart meter, they will also be assigned to the new demand tariff by default. Customers will also be able to opt out of the demand tariff to a TOU tariff. This process can be undertaken by the customer contacting their retailer and requesting the change.

3. Optional purchase of remotely read interval meter – if a residential or low voltage commercial consumer chooses to purchase and install a smart meter, they will also be assigned to the residential or commercial demand tariff.

Some customers may choose to opt-out of the demand tariff to the time-of-use (TOU) tariff. The TOU tariff has a fixed charge and different consumption charges depending on the time of day that a customer uses electricity. Each of the TOU consumption charges have a defined time period. Consumption during the peak period has a higher consumption charge than consumption during the shoulder or off-peak periods. This tariff provides an opportunity and an incentive for consumers to respond to price signals at different times of the day, where reflected in the final price of their retailer, and manage their electricity bill in line with the costs they impose on the network.

Customers are ineligible to apply for the demand tariff if they have been on this tariff in the previous 12 months and have since been supplied energy at the Residential TOU Network tariff to that premises.

Consumer Engagement

The changes to the network tariff structure have been strengthened by the input received from the community. We engaged with residential and business consumers to seek their feedback on network pricing plans.  This engagement included hosting consumer workshops, online surveys, and meeting with our consumer council, the Energy Consumer Reference Council (ECRC). More information about our consumer engagement program can be found here.

Further Network Tariff Reforms

Evoenergy is currently preparing its second TSS, which is due to the Australian Energy Regulator by the end of January 2018. The second TSS aims to continue to reform Evoenergy’s network tariffs toward greater cost reflectivity.

Gas network prices

Evoenergy's current Gas network schedule of prices 2017-18 applies to the ACT, Queanbeyan and Palerang gas distribution network. These prices were approved by the AER and have been in effect from 1 July 2017.

The 2018-19 gas network schedule of prices has been approved by the AER and will be in effect 1 July 2018.

The schedule should be read in conjunction with the Access Arrangement. A new Access Arrangement has been submitted to apply from 1 July 2016. Details of this review can be found on the Evoenergy consumer engagement page of this website and on the AER’s website.

For prices in the Nowra gas network, please refer to the Nowra gas network schedule of prices 2018-2019.

All charges are exclusive of GST.

How much does it cost to connect or alter a connection?

We do not charge for a basic connection service under our model standing offer.

For other new connection and connection alteration services, the connection charge (if any) is generally determined based on the costs required to connect the site or alter the existing service, and the expected future revenue from the new connection or the alteration. These costs vary from property to property. Depending on the service offered to you, the costs include connection to the main or of a mains extension, the service pipe work, and the supply and installation of a meter set including the pressure regulator. It may also include the excavation and reinstatement of public foot paths and roads as well as any statutory notification required including traffic control.

Please note: If a service-laying contractor turns up at a site to perform a service, including a basic connection, but finds the site conditions differ from what was described in the application, they will inform us before carrying out the work. We will then make a new connection offer, and won’t proceed with the connection or alteration until that’s been accepted.

What about supply service charges?

We’re distributors – generally, we don’t issue bills to customers. Those come from the retailers. We do bill retailers for transporting gas to your premises, and you can view our charges for our gas transportation services to retailers (known as reference services) - including the charges to disconnect and reconnect a premise in the pricing schedules listed on this page.

Gas access arrangement

On 26 May 2016, the Australian Energy Regulator (AER) released its final decision (Access Arrangement Final Decision 2016-2021) on Evoenergy’s proposed Access Arrangement (AA) to apply to Evoenergy’s ACT, Queanbeyan and Palerang gas distribution network for the period 1 July 2016 – 30 June 2021. The AER’s final decision approved an AA (Access Arrangement 2016-2021) containing revisions required by the AER. The AA will take effect from 1 July 2016.

The services

The AA contains a suite of services and prices along with the associated terms and conditions for those services. All of these will form the basis of any Transportation Agreements that Evoenergy will enter into with Users (generally retailers).

The services in the AA include seven Reference Services, one Non-reference Service and a Negotiated Service. They are as follows:

1. Reference services

Capacity reservation service

This transportation service has its charges determined on the basis of capacity reserved (GJ of MDQ). The service includes two options that provide flexibility. These are:

Summer tranche option — provides the option of reserving an additional tranche of capacity between the months of October and April
Short term capacity option — provides the option of reserving additional short term capacity under certain special conditions which differ depending on whether the annual consumption at the delivery point is more or less than 30 TJ.

Managed capacity service

This service is similar to the Capacity Reservation Service, but uses the prior year's actual maximum daily withdrawal as the minimum basis for reservation quantity or a higher figure nominated by the user. This service is not subject to overruns on MDQ and provides flexibility for users, particularly where daily demand for delivery point is expected to grow.

Throughput service

Charges for this service are based on annual consumption rather than capacity.

Multiple delivery point service

This service allows Users (either retailers or customers) with multiple delivery points to simplify arrangements with Evoenergy by entering into a single agreement for transportation covering a number of delivery points for that User.

Tariff service

This service provides for delivery of gas to delivery points with annual consumption less than 10 TJ pa.

Meter data service

This service provides for reading of meters and handling of meter data. The service has been established in conjunction with the introduction of retail contestability.

Ancillary service

These are services for the provision of: (i) requests for services; (ii) special meter reads; (iii) disconnection; and (iv) reconnection.

2. Non-reference services

Interconnection of Embedded Network Service

This is a service to provide for the establishment of a single delivery point from the Network to an embedded network.

3. Negotiated service

This is a transportation service specifically designed to meet needs of users that are not met by the Reference and Non-Reference Services.

Pricing structures

There is a single pricing zone for all customers supplied under the Evoenergy Access Arrangement, reflecting the relatively small geographical extent of the ACT, Queanbeyan and Palerang gas network.

Further information

This information is intended to provide a general outline of the elements contained in Evoenergy's Access Arrangement.

It is not intended to be, nor is it a complete or definitive statement of terms of the Access Arrangement. Copies of the Access Arrangement can also be obtained from the AER website and hard copies are available by contacting Manager Gas Networks on 02 6270 7608 or emailing Gas_Technical_Queries_ACT@znx.com.au.

Enquiries about access to the distribution system (on behalf of Evoenergy) should be made to the Commercial Operations Manager of Jemena Asset Management by calling 02 9867 7000

Tariff Structure Statement

A Tariff Structure Statement provides customers with information about current network tariffs and how these may change in the future. Australia’s National Electricity Rules require all electricity network businesses to publish a Tariff Structure Statement.

Evoenergy’s first Tariff Structure Statement (including the Indicative Pricing Schedule) and overview were approved by the Australian Energy Regulator in February 2017. This forms the basis of our electricity network prices for the 2017/18 and 2018/19 financial years.

In January 2018, we lodged our second proposed Tariff Structure Statement and overview with the Australian Energy Regulator. The Australian Energy Regulator is expected to release its final decision on our second Tariff Structure Statement in early 2019. This will form the basis for our prices in the 2019/20 to 2023/24 regulatory period.

In preparing our Tariff Structure Statements, we consulted widely with a range of customers about how to design tariffs that are most suitable for the ACT, and reflect the costs of operating the electricity network.

More information about our consumer engagement can be found here.

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