ActewAGL applying to jack up prices

actewagl house

THE Australian Energy Regulator has announced that submissions have been made to it by our own ActewAGL to push up electricity prices.

ActewAGL has proposed annual increases of an average 2.5% over the next five years for its distribution network. ActewAGL’s distribution charges make up around 30% of ACT consumers’ electricity bills.

ActewAGL will be presenting its proposal at a public forum on 30 July in Canberra. Members of the public are welcome to attend the forum and ask questions of ActewAGL about the proposal. The AER’s Consumer Challenge Panel will also be attending the forum to put forward its perspectives on the proposal.

Over the next nine months the AER will be scrutinizing the proposal through a public review process. Anyone interested in participating in the review will be able to make written submissions or attend a public forum.

“We would like to hear from consumers whether they think these increases are justified,” AER Chairman Andrew Reeves said.

“ActewAGL is seeking a higher return on its assets, despite investment conditions improving and the costs of financing infrastructure businesses decreasing. ActewAGL is also proposing substantial capital expenditure for the replacement of assets.”

“These factors will affect residential and business electricity bills. The AER would like to hear from consumers as we decide whether the charges and the investment that is proposed is in the long term interests of residents and businesses in the ACT.”

Submissions should be sent to the AER by 22 August 2014. A draft determination is expected to be published in November 2014, and further submissions will be invited at that time. A final determination will be made by April 2015, with new prices to commence on 1 July 2015.
ActewAGL’s proposal is available at www.aer.gov.au.

The public forum will be held at AER’s Canberra office on Wednesday 30 July at 9.15am-11:30am.

AER Canberra Office: Level 3, 23 Marcus Clarke St (Behind QT)

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