A 2020-25 proposal to manage the SA electricity distribution network has been lodged with the Australian Energy Regulator, with SA Power Networks hoping to deliver an average reduction of $40 for residential customers and $111 for small-to-medium businesses in the first year.
This is broadly consistent with likely outcomes outlined in August 2018 when the 2020-25 Draft Plan was released for public consultation.
The extent of savings delivered to individual customers in 2020-21 will depend on the outcome of the regulatory process, how the customer uses energy, and to what extent retailers pass on the reduction in network charges.
There are still a number of steps before a final decision. The Regulator will conduct its own public consultations prior to issuing a draft decision in September 2019. SA Power Networks will submit an updated proposal in December 2019 and the Regulator will make a final decision in April 2020.
SA Power Networks manages the distribution network that delivers electricity to 860,000 homes and businesses across South Australia.
The Australian Energy Regulator approves revenue for a five-year period and how that revenue will be collected from customers through tariffs (distribution network charges make up about 30 per cent of the residential bill in South Australia).
While SA Power Networks lodged its 2020-2025 Proposal to the Regulator on 1 February 2019, a number of steps are required before a final decision by the Regulator in April 2020.
Lauren Butler is the assistant editor for Utility Magazine. She’s based in Melbourne, Australia.