ACTEWAGL has been given the green light to increase its retail electricity prices by a maximum of almost 12 per cent from July 1, according to a price recalibration report released by the Independent Competition and Regulatory Commission today (June 7). 

The economic regulator said ActewAGL’s regulated (standing offer) tariffs can increase by a maximum of 11.95 per cent, based on changes in the costs of supplying electricity to small customers in the ACT, which would result in a bill increase of $3.76 per week for a typical Canberra household consuming 6500kWh per year, and $14.45 per week for an average small business consuming 25,000kWh per year.

The main reason for the increase in retail prices is the 36.91 per cent increase in network costs, which reflects the increase announced by the Australian Energy Regulator on May 7, according to the report.  

The network costs approved by the Australian Energy Regulator have increased due to higher transmission and distribution costs, making up 2.70 percentage points of the increase in retail prices, and due to the cost of the ACT government’s large-scale feed-in tariff scheme (part of the ACT government’s 100 per cent renewable energy target), which has contributed 13.13 percentage points to the price increase.

Partly offsetting higher network costs, the report said wholesale energy purchase costs fell, which took 4.72 percentage points off the retail price increase, and wholesale energy purchase costs fell because of an increase in renewable energy capacity and continuing low gas prices. Gas prices have fallen because of reduced gas-fired generation demand and lower international LNG export prices. 

“Despite the increase in regulated electricity prices, we expect the average bill for Canberrans on standing offers will be in line with average standing offer bills in Victoria, NSW and Queensland,” senior commissioner Joe Dimasi said.  

However, he said care needs to be taken in making interstate comparisons as the regulated price increases mentioned only apply to standing offer tariffs. Many customers can pay less if they shop around for better deals on market offers, he said.  

“I encourage consumers to contact their retailer and ask if they have a better offer that could save them money,” he said.

“We understand how complicated it can be to compare electricity offers.

“The ACT government has asked us to develop a code that will require electricity retailers  to help consumers compare electricity offers and tell their customers if they might have an offer that could  reduce their bills. In the meantime, consumers should ask their retailer for advice.” 

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