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Category: Electricity Energy and Utilities / Industry / Business, Economics and Finance

Proposed electricity changes could cut Queensland bills

Thursday, 29 Sep 2016 10:31:43 | Chris O'Brien

Powerlines in Tasmania's Midlands (ABC News: Nicole Price)

The Australian Energy Regulator (AER) wants to cut the transmission cost of electricity in Queensland by almost a third from next year, saving an average household $40 a year.

The regulator's draft decision is for Powerlink to reduce its revenue by 29 per cent from 2017 to 2022.

Powerlink had proposed a cut of 25.4 per cent.

AER Board member James Cox said it was a fair outcome.

"It balances the consumer interests — and it's important consumers get lower prices and they told Powerlink that and they told us that," Mr Cox said.

"But it's also important they get a safe and reliable power supply. So we've achieved all of those things we believe."

He said the draft decision reflected reductions to revenue sought by the networks, with additional savings primarily the result of lower interest rates and other financial adjustments.

Powerlink would be able to recover average revenue of $744 million from consumers each year, which is $281 million less than the current period.

"This translates to an estimated average saving of $40 per household in each of the next five years, relative to the existing level, as transmission costs account for around 9 per cent of the average Queensland customer's electricity bill," Mr Cox said.

"The key difference between the proposal and the draft decision relates to the rate of return for the businesses to service interest on loans and provide a return on investment to shareholders."

The final decision will be made by the end of April of next year.

AustraliaPlus


 

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