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Posts Tagged ‘energex’

Queensland’s growth set to push electricity prices higher

Friday, May 7th, 2010

Strong population and housing growth is placing increasing demands on the Queensland electricity network, resulting in the need for increased network investment that will ultimately flow on to consumers and businesses in the form of higher electricity tariffs. Our growing appetite for energy guzzling appliances such as air conditioners and plasma TVs is also contributing to the strain.

Yesterday the Australian Energy Regulator (AER) highlighted these issues when it approved significant increases to capital expenditure programmes for Energex and Ergon Energy. Energex operates South-east Queensland’s electricity distribution network, whilst Ergon operates the power network in regional and rural Qld.

For Energex, the AER has approved capital expenditure of $6.4 billion over the five years starting 1 July 2010. Ergon Energy has received approval for capital expenditure of $5.6 billion over the next 5 years.

According to the AER, these capital expenditure programmes will result in network charges for Energex’s customers rising by an average of 17 per cent in 2010-11, followed by 6.8 per cent per year over the following 4 years. For Ergon Energy’s customers, network charges would increase by 29 per cent in 2010-11 followed by 4.6 per cent in the subsequent 4 years.

The increase in network charges will be incorporated by your power company into their retail electricity tariffs from 1 July 2010 onwards.

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AER approves electricity network cost increases in Qld

Tuesday, December 1st, 2009

The Australian Energy Regulator (AER) yesterday released its draft determination on the costs that Queensland electricity distributors Energex and Ergon Energy will be able to recover for the provision of electricity distribution services over the period from 1 July 2010 to 30 June 2015. Electricity distributors charge fees to your energy retailer to deliver electricity to your home or business premises – these fees are passed on to end consumers and businesses in the form of higher electricity supply charges and usage charges.

Households and businesses in Ergon Energy’s network area (regional and rural Qld) will see an increase in network charges of 26 per cent in the first year followed by 4 per cent in the four years to 30 June 2015. Those living in Energex’s network area (South-east Queensland), will see increases of 21 per cent in 2010/11, followed by 6 per cent increases over the remaining four years.

The AER states that network charges represent roughly 40 per cent of the power bills paid by consumers, meaning that the average residential customer in Queensland would see annual electricity bills rising by $133 (around 9 per cent) in 2010-11 and by around $31 (approx. 2 per cent) each year thereafter.

The reasons for the AER’s decision to approve such hefty increases relate to increased investment required to support both a growing population and increases in peak demand. Apparently over the past 12 years Queensland’s population has swelled by 33 per cent whilst peak demand has exploded by 99 per cent.

You can read the AER draft determination here. Interested parties are invited to provide written submissions on the AER’s draft determinations and the Queensland electricity distributors’ revised regulatory proposals by 16 February 2010.

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