Endevour Energy has sent a proposal to the Australian Energy Regulator (AER) on the total revenue it can recover from customers from 2014 to 2019.
“We’ve held constructive conversations with customer representatives and the AER about how to resolve our 2014-19 revenue determination and manage future pricing outcomes for customers,” Endeavour Energy’s Chief Executive Officer, Tony Narvaez, said.
“We are committed to doing our part to keep downward pressure on our portion of their electricity bill, which makes up about 30 per cent of the total bill for an average residential customer.
“Extensive efficiency programs since 2009 have generated cuts in our operating costs that have been passed through to customers through the lowest network charges in NSW.
“Continuing this trend, this proposal seeks to deliver a real one per cent annual decrease in our portion of customers’ electricity bills for the next six years, which includes the outcomes from this remittal proposal.
“If approved by the AER, it will lock in a $75 reduction on our network charges each year for an average residential customer compared to their network charges in 2012.”
Mr Narvaez said Endeavour Energy’s approach reflects the long-term interests of customers.
“Customers have consistently told us they depend on us to provide a safe, reliable and affordable electricity supply.
“We welcome consumer groups’ support for our proposal and their positive feedback for the collaborative way we have gone about settling our revenue for the current regulatory period and developing our plans for the next five years.
“We are offering to take off the table $434 million in potential revenue to resolve the appeals processes and provide certainty to customers.
“We will be seeking to retain $110 million above the AER’s April 2015 determination, but we will be reducing future revenues by $240 million.”
Mr Narvaez said the remittal proposal would end the legal processes regarding the AER’s April 2015 revenue determination for Endeavour Energy.