Customers of Endeavour Energy will see a decrease in their electricity bills following the Australian Energy Regulator’s final revenue decision for 2019-24, issued 1 May 2019.
“This is a great outcome for one million customers in Greater Western Sydney, the Southern Highlands and the Illawarra who will receive a decade of declining network charges,” Endeavour Energy’s Chief Executive Officer, Tony Narvaez, said.
“From 1 July, average residential and small business customers will receive a real reduction on the network component of their annual electricity bill of approximately $18 and $24.
“The decision locks in savings over the next five years whereby residential and small business customers will pay $86 and $148 less per year in 2024 than they do today.
“This equates to a real annual saving of $254 for residential customers and $322 for small business customers compared to what they paid a decade ago in 2014.
“Our revised five-year plan will reduce distribution network prices by an average 3.7 per cent per year to help ease cost of living pressures, and deliver safe and affordable electricity.”
Mr Narvaez said the outcome had been possible due to the collaborative and respectful engagement between the AER, consumer advocates, and many other stakeholders and customers.
“I would like to thank all those involved for working together in the long-term interests of customers.
“Their valuable assistance, support and feedback has helped Endeavour Energy deliver a revenue proposal that was acceptable to all parties.
“Endeavour Energy is committed to embedding this customer-centric culture into all aspects of our business to create real improvements in price and service delivery — particularly around the options available to customers who adopt new technologies like batteries and electric vehicles.”
Mr Narvaez said the AER’s decision delivered a balanced outcome that kept electricity supply safe and affordable while delivering a grid ready for the future.
“We need to build 13 new major substations, and connect 105,000 new homes and businesses to our network over the next five years to meet population growth in some of the fastest growing communities in Australia.
“Savings in our operating expenditure of $64 million per year since 2013 and ongoing efficiencies within our business have helped offset the costs of building the infrastructure needed to service growth.
“Low interest rates on the money we borrow to fund investment in our network has also helped take the pressure off network charges for the foreseeable future.”
Mr Narvaez said the AER had also approved a range of new demand and time of use tariffs to give customers greater choice and control over their electricity bill than ever before.
“I would encourage all customers to check with their electricity retailer to make sure they are getting the benefit of the right network tariff to suit their lifestyle.
“Endeavour Energy’s new tariffs are being introduced in a staged manner and will not immediately apply to the vast majority of Endeavour Energy’s residential and small business customers.
“The new tariffs will only apply to new customers connecting to our network or where a customer has their meter upgraded after 1 July 2019.
“In making this change, we’ve protected customers by providing them the choice to opt-out and remain on a flat network tariff if they want to.
“Customers who already have a smart meter can choose to opt-in to the new demand and time of use tariffs if it gives them the greatest benefit from their investment in solar, batteries and electric vehicles.
“We have received positive feedback from customers and stakeholders on adopting this approach, with the AER commending our work with consumer groups to address the impact of this change on customers.”