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Home > Electricity > Pricing - Approvals
Pricing - Approvals

Standing Offer Price Approvals

The Regulator is required to approve the maximum standing offer prices a regulated offer retailer may charge small customers on mainland Tasmania for services provided under standard retail contracts. Standing offer prices will be available for those customers choosing not to enter into a market retail contract.

Subject to the Regulator’s approval, standing offer prices are adjusted each year in accordance with the relevant determination.

The process for approving standing offer prices during the regulatory period covered by the 2013 Standing Offer Determination is set out in the Guideline issued by the Regulator.


Approvals under the 2013 Standing Offer Determinations (July 2013)

As part of the May 2012 'Energy for the Future' reforms, the Regulator was required to conduct an investigation and determine standing offer prices. The Regulator’s 2013 Standing Offer Investigation Report and the 2013 Standing Offer Determinations for Retailer A and Retailer B were published on 30 July 2013.

More information about the 2013 Standing Offer Investigation and Determinations is available here.

Approvals for the period 1 January 2014 to 30 June 2014

On 9 August 2013 the Regulator received a Retail Pricing Proposal setting out proposed standing offer prices for the period 1 January 2014 to 30 June 2014. Here is a copy of the covering letter and Retail Pricing Proposal.

The Regulator reviewed the Retail Pricing Proposal and verified that the proposed standing offer prices complied with the requirements set out in the Regulator’s determinations.

On 13 August 2013 the Regulator approved standing offer prices for the period 1 January 2014 to 30 June 2014. Here is the Regulator’s media release.


Approvals under the 2013 Standing Offer Determination (Aurora Energy) (December 2013)

In response to the announcement of 26 September 2013 that the Government at that time was deferring the sale of Aurora Energy’s customer base and that retail competition would commence on 1 July 2014, the Regulator reviewed the 2013 Standing Offer Determinations it made in July 2013 to assess the impact of the policy change. After publicly consulting on proposed changes, the Regulator released an amended determination on 10 December 2013.

Approvals for the period 1 January 2014 to 30 June 2014

On 16 December 2013 the Regulator received Aurora Energy’s Retail Pricing Proposal setting out the proposed standing offer prices for the period 1 January 2014 to 30 June 2014.

Copies of the documents submitted by Aurora are available here:

Retail Pricing Proposal
Internal Audit Certificate
Internal Audit Report
Directors’ Certificate of Compliance
PDF Document Draft Standing Offer Price Schedule

The Regulator reviewed the Retail Pricing Proposal and verified that the proposed standing offer prices complied with the requirements set out in the amended determination .

On 20 December 2013 the Regulator approved the standing offer prices for the period 1 January 2014 to 30 June 2014. Here is the Regulator’s media release.


Approvals under the 2013 Standing Offer Determination (Aurora Energy) (March 2014)

In December 2013, as part of the approval process for the standing offer prices that were to apply from 1 January 2014 the Regulator identified that, due to legislative changes, Aurora no longer had the ability to impose late payment fees or interest on overdue accounts.

On 15 January 2014, Aurora Energy requested that the Regulator consider amending Aurora’s standing offer determination to incorporate late payment fees and interest on overdue accounts.

After considering the request the Regulator concluded that Aurora’s inability to impose these charges was an unintended consequence of the legislative changes made under the May 2012 energy reform program.

The Regulator therefore proposed a number of changes to the determination to reinstate Aurora’s ability to impose these charges.

After consulting on the proposed changes (the Regulator received PDF Icon one submission on the proposed changes), the Regulator released an PDF Document amended determination on 28 February 2014.


Approvals for the period 3 March 2014 to 30 June 2014

On 28 February 2014 the Regulator received Aurora Energy’s draft standing offer price schedule setting out its proposed standing offer prices (including the late payment fee and interest on overdue accounts).

After verifying that the draft standing offer prices complied with the amended determination, the Regulator approved the draft standing offer prices on 3 March 2014.

The standing offer price and charges set out in the schedule apply from the date of the Regulator’s approval, 3 March 2014, until 30 June 2014.

A copy of the approved standing offer price schedule is available on Aurora Energy’s website.


Approvals for the period 1 July 2014 to 30 June 2015

On 30 May 2014 the Regulator received Aurora Energy’s Standing Offer Pricing Proposal setting out proposed standing offer prices for the period 1 July 2014 to 30 June 2015.

This was a draft proposal as, at that stage, the Australian Energy Regulator (AER) had not approved Aurora Distribution’s Pricing Proposal for 2014-15 such that the final distribution costs for 2014-15 were not available. The AER approved Aurora Distribution’s Pricing Proposal on 13 June 2014 and Aurora submitted its final Standing Offer Pricing Proposal on 16 June 2014.

Copies of the documents submitted by Aurora are available here:

Standing Offer Pricing Proposal
Prior year adjustments submission
Internal Audit Certificate
Directors’ Certificate of Compliance
Draft Standing Offer Price Schedule

The Regulator reviewed the Standing Offer Pricing Proposal and verified that the proposed standing offer prices comply with the requirements set out in the determination.

On 18 June 2014 the Regulator approved the standing offer prices for the period 1 July 2014 to 30 June 2015. Here is the Regulator’s media release.

Approvals for the period 1 July 2015 to 30 June 2016

On 15 June 2015 the Regulator received Aurora Energy’s Standing Offer Pricing Proposal setting out proposed standing offer prices for the period 1 July 2015 to 30 June 2016.

Copies of the documents submitted by Aurora Energy are available here:

Standing Offer Pricing Proposal
Internal Audit Certificate
Directors’ Certificate of Compliance
Standing Offer Price Schedule

The Regulator reviewed the Standing Offer Pricing Proposal and verified that the proposed standing offer prices comply with the requirements set out in the
determination.

On 19 June 2015 the Regulator approved the standing offer prices for the period 1 July 2015 to 30 June 2016. Here is the Regulator’s
media release.

Tariff Approvals

Up to 31 December 2013 the Regulator is required to approve maximum regulated tariffs Aurora Energy could charge small (formerly non-contestable) customers on mainland Tasmania for the provision of retail electricity services. Subject to the Regulator’s approval, Aurora is permitted to adjust its tariffs each year in accordance with the relevant determination. The process for approval of Network Tariffs and Retail Tariffs is set out in the relevant Guidelines issued by the Regulator.

Aurora's current tariffs are published on its website.

Approvals under the 2013 Determination

As part of the May 2012 'Energy for the Future' reforms, the Regulator was required to make a new retail price determination, the 2013 Determination. The 2013 Determination applies for the period from 1 July 2013 to 31 December 2013. More information about the 2013 Determination is available here.

The Regulator released its Retail Price Determination on 28 March 2013. The Regulator also published its revised Retail Tariff Approval Guideline at this time.

Approvals for the period 1 July 2013 to 31 December 2013

On 30 May 2013 the Regulator received Aurora Energy’s Retail Pricing Proposal and supporting documentation for the period from 1 July 2013 to 31 December 2013. This was a preliminary proposal as, at that stage, the Australian Energy Regulator (AER) had not approved Aurora Distribution’s Pricing Proposal for 2013-14. The AER approved Aurora Distribution’s Pricing Proposal on 31 May 2013 and Aurora submitted its final Retail Pricing Proposal on 12 June 2013.

Copies of the documents submitted by Aurora are available here:

Retail Pricing Proposal

Prior years’ cost adjustment submission

Tax event submission

Internal Audit Certificate

Internal Audit Report

Directors’ Certificate of Compliance

Draft Retail Tariff Pricing Schedule

On 18 June 2013 the Regulator approved Aurora Energy’s retail tariffs for the period from 1 July 2013 to 31 December 2013. The Regulator’s Statement of Reasons - Approval of retail tariffs for small customers from 1 July 2013 to 31 December 2013 in accordance with the 2013 Price Determination sets out the decisions made by the Regulator in the approval and the reasons for those decisions. The Regulator’s media release and Aurora’s approved retail tariff schedule are also available.

The Regulator is required to determine standing offer prices to apply for the period from 1 January 2014 to 30 June 2016 by 31 July 2013. More information about the 2013 Standing Offer Determinations is available here.

Approvals under the 2010 Determination (Retail Services only)

The Regulator released its Retail Price Determination on 29 October 2010. The Regulator also published its revised Retail Tariff Approval Guideline at this time.

Approvals for the period 1 July 2012 to 30 June 2013

On 20 June 2012 the Regulator approved Aurora Energy’s retail tariffs for the period 1 July 2012 to 30 June 2013. The Regulator’s Statement of Reasons for the Approval of Retail Tariffs for 2012-13 sets out the decisions made by the Regulator in the approval and the reasons for those decisions. The Regulator’s media release and Aurora’s approved retail tariff schedule are also available.

On 1 June 2012 the Regulator received Aurora Energy’s Retail Pricing Proposal and supporting documentation for the period 1 July 2012 to 30 June 2013. This was a preliminary proposal as, at that stage, the Australian Energy Regulator (AER) had not approved Aurora Distribution’s Pricing Proposal for 2012-13.

The AER’s approval of Aurora Distribution’s Pricing Proposal was published on 7 June 2012 and Aurora submitted its final Retail Pricing Proposal on 8 June 2012.

Copies of the documents are available here:



Impact of carbon price on Aurora Energy's electricity supply costs

The current 2010 Retail Price Determination included a mechanism to review Aurora's energy supply costs if a carbon pricing mechanism was introduced.

The Regulator engaged consultants, IES, to estimate the impact of the Australian Government’s carbon price on Aurora’s energy supply costs.

The report relates only to the carbon price impact on Aurora’s energy supply costs and does not address the impact on end prices paid by customers.

Electricity prices for 2012-13 will be determined in June 2012 after the Regulator considers Aurora's retail tariff proposal for 2012-13, which is required to be submitted to the Regulator by 30 May 2012.

Amongst other potential adjustments, the retail tariff proposal will need to take account of the outcomes of the Australian Energy Regulator's determination in relation to electricity distribution prices, which is not due to be published until 30 April 2012.

IES’s report found that the introduction of the carbon price on 1 July 2012 would increase Aurora’s energy supply costs by approximately 16 per cent during 2012-13. As the cost of energy makes up about 40 per cent of total electricity supply costs, the price on carbon is expected to increase the revenue Aurora is allowed to earn by around 6.5 per cent.

This increase would be in addition to the 8.7 per cent increase in Aurora’s revenue that has already been approved for 2012-13 as part of the 2010 Retail Price Determination.

Approvals for the period 1 July 2011 to 30 June 2012

On 10 June 2011 the Regulator approved Aurora Energy’s retail tariffs for the period 1 July 2011 to 30 June 2012. The Regulator’s Statement of Reasons for the Approval of Retail Tariffs for 2011-12 sets out the Regulator’s reasons for and decisions in regard to the approval. The Regulator’s media release and Aurora’s approved retail tariff schedule are also available.

On 6 June 2011 the Regulator received Aurora Energy’s Retail Pricing Proposal and supporting documentation for the period 1 July 2011 to 30 June 2012. Copies of the documents are available here:


On 21 April 2011 the Regulator received Aurora Energy’s Final Revised Retail Tariff Strategy for the period 1 July 2011 to 30 June 2012.

Approvals for the period 1 December 2010 to 30 June 2011

On 19 November 2010 the Regulator approved Aurora Energy’s retail tariffs for the period 1 December 2010 to 30 June 2011. The Regulator’s Statement of Reasons for the Approval of Retail Tariffs sets out the Regulator’s reasons for and decisions in regard to the approval. Aurora's approved retail tariff schedule is also available.

The Aurora Energy Draft Retail Tariff Strategy and Pricing Proposal from 1 December 2010 was received on 12 November 2010 together with

Approvals under the 2007 Determination

Under these Guidelines issued under the 2007 Determination, Aurora was required to prepare a Network Tariff Strategy for the period 1 July 2008 to 30 June 2012 and a Retail Tariff Strategy for the period 1 July 2008 to 30 June 2010. Aurora was required to consult with customers and other interested parties on its proposed strategies before submitting them to the Regulator for approval. The Network Tariff Strategy and the Retail Tariff Strategy were approved by the Regulator in June 2008.

Aurora must write to the Regulator seeking approval of its proposed network tariffs under the Network Tariff Approval Guideline and 2007 Determination by 30 April each year. Aurora must also seek approval of its retail tariffs in accordance with the 2007 Determination, the Retail Tariff Approval Guideline and Regulation 5 (3) of the Electricity Supply Industry (Tariff Customers) Regulations 2008 at least six weeks prior to the commencement of the next pricing period. The Regulator is then required to make a decision on whether to approve the proposed tariffs.

Approvals for the Period 1 July 2011 to 30 June 2012

Distribution Pricing – Network Services and Distribution Special Services

The Regulator, having reviewed Aurora’s Distribution Special Services and Network Tariff Proposal, concluded that Aurora had complied with the Regulator’s Guideline: Approval of Network Tariffs in the 2007 Determination and 2008 Special Services Determination and that the proposed network tariffs for the period are consistent with Aurora’s Network Tariff Strategy. Therefore, on 29 April 2011 the Regulator approved both of these pricing proposals for the period 1 July 2011 to 30 June 2012. A copy of the Statement of Reasons for the Approval of Network Tariffs and Distribution Special Services for 2011-12 is now available. Please note that this Statement of Reasons relates to the network component of the retail tariffs only.
.
In approving the Network Tariff Pricing Proposal the Regulator noted that while the price of network tariffs will increase on average by around 9.8%, network charges make up on average around 50 per cent of end prices. Therefore, the impact of the increase on retail tariffs will be less than this. The main reason that network tariffs will increase above the level predicted at the time of the 2007 Investigation is that Aurora has not, to date, received the revenue it expected from customers. This is due to the fact that growth in customer numbers and consumption has not met the levels that Aurora had forecast. Aurora is therefore entitled to recover the shortfall in 2011-12. Inflation has also been slightly higher over the period since 2007 than expected in 2007.

Until the Regulator receives Aurora's retail tariff proposal, the actual impact on tariff customers will not be known. The Aurora Retail Pricing Proposal is to be lodged by 30 May 2011, and the Regulator will consider the proposal contained in that submission prior to making a decision.

It should also be noted that, as the Regulator does not approve retail prices for contestable customers, it cannot comment on the likely price changes for these customers from 1 July 2011.

On 20 April 2011 the Regulator received Aurora’s 2011-12 Distribution Special Services Pricing Proposal.

On 19 April 2011 the Regulator received Aurora’s 2011-12 Network Tariff Pricing Proposal, attaching the required Director’s Certificate and Internal Audit Certificate and Internal Audit Report.


Approvals for the Period 1 July 2010 to 30 June 2011

Retail Tariffs for the period from 1 July 2010 until the commencement of the 2010 Determination

The retail part of the 2007 Determination is due to expire on 30 June 2010. However, due to the delays in the completion of the 2010 Investigation there will be no new retail tariff determination until such time as the 2010 Investigation is completed. Given this, the 2007 Determination continues to have effect under Regulation 34(5) of the Electricity Supply Industry (Price Control) Regulations 2003.

On 24 June 2010 the Regulator approved Aurora Energy’s retail tariffs for the period commencing 1 July 2010 until the commencement of the next determination. The Regulator has published its Statement of Reasons and a copy of the approved Schedule of Retail Tariffs.

On 21 June 2010 Aurora forwarded to the Regulator an application for the pass-through of the approved network tariffs to customers in accordance with the 2007 Determination and the Tariff Customers Regulations. Copies of the documents are available here:


Distribution Pricing

The Regulator approved Aurora Energy’s 2010-11 Network Pricing Proposal and Aurora Energy’s 2010-11 Distribution Special Services Pricing Proposal on 21 May 2010. A copy of the Statement of Reasons is available here.

On 7 May 2010 the Regulator received Aurora's 2010-11 Distribution Special Services Pricing Proposal.

On 30 April 2010 the Regulator received Aurora Distribution’s Pricing Proposal for 2010-11 and supporting papers. Copies of the documents are available here:

o Distribution Network Tariff Pricing Proposal
o Calculation of the Allowable Annual Revenue Requirement (AARR)
o Distribution National Electricity Market Expenditures Submission
o Directors' Certificate
o Audit Certificate
o Internal Audit Certificate

Approvals for the Period 1 July 2009 to 30 June 2010

The Regulator approved Aurora's Network Tariff Pricing Proposal for 2009 - 10 on 22 May 2009 and Aurora's Retail Tariff Pricing Proposal for 2009 -10 on 5 June 2009. The Regulator has now released his Statement of Reasons which sets out his reasons for and decisions in regard to the approval. Aurora's retail tariff schedule is also available (Attachment A). A copy of the Regulator's media release of 5 June 2009 is also available.

Retail Pricing
On 18 May 2009 the Regulator received Aurora Retail’s Pricing Proposal for the period 1 July 2009 to 30 June 2010 and supporting papers. Copies of the documents are available here:

o Letter to the Regulator requesting approval of Retail Tariffs for 2009-10
o Retail Pricing Proposal
o Internal Audit Report and Certificate
o Prior Year Cost Adjustments
o Revised Transmission Cost Adjustments for 2006-07

Distribution Pricing
On 30 April the Regulator received Aurora Distribution's Pricing Proposal for 2009 -10 and supporting papers. As the Australian Energy Regulator (AER) final decision on transmission prices (incorporating lower than expected prices) was released on 1 May 2009, Aurora provided a revised Pricing Proposal on 1 May 2009. On 15 May 2009, Aurora advised that it as there was an error in Table 32 regarding the times for the commencement of the weekday and weekend day start times and the any day finish time. Consequently, Aurora provided a further revised Pricing Proposal. Aurora has also provided a revised internal Audit Certificate and Director's Responsibility Statement. Aurora has previously provided a submission on Distribution NEM Costs Copies of the documents are available here:




Approvals Granted for the Period 1 July 2008 to 30 June 2009

In July 2008, the Regulator wrote a letter to Aurora expressing a number of concerns regarding its tariff strategy and drawing attention to the findings contained in the Comparison of 2008 Australian Electricity Distribution Use of System Charges Report.

The Regulator approved Aurora Energy’s Network Tariffs and Retail Tariffs for the period 1 July 2008 to 30 June 2009 in accordance with the 2007 Determination and the relevant Guidelines on 26 June 2008. The Regulator has now released his Statement of Reasons which sets out his reasons for and decisions in regard to the approval. A revised Retail Tariff Schedule (Attachment A) was received on 7 July 2008.

The Regulator received Aurora's revised Retail Tariff Pricing Proposal for 2008-09 on 16 June 2008 and a revised Retail Tariff Strategy for the period 1 July 2008 to 30 June 2010 on 23 June 2008 and its final draft of its Retail Tariff Schedule on 26 June 2008.

The Regulator received Aurora's response to the Regulator's questions on Aurora's initial Distribution NEM Costs Submission, its revised Distribution NEM Costs Submission and Network Pricing Proposal and supporting paper on the Calculation of the Maximum Annual Revenue for Distribution Network Services for the period 1 July 2008 to 30 June 2009 on 4 June 2008.

The Regulator received Aurora's Network Tariff Strategy and Network Pricing Proposal for 2008-09 on 1 May 2008 and Aurora's Retail Tariff Strategy and Retail Tariff Pricing Proposal on 16 May 2008. This followed consultation by Aurora on its Draft Network Tariff Strategy and Draft Retail Tariff Strategy which had been published on the Aurora website. The Regulator also published his Response to the Draft Network Tariff Strategy.


Approvals Granted for the Period 1 January 2008 to 30 July 2008

The Regulator has released a Statement of Reasons for the approval of the Network Tariffs and Retail Tariffs for the period 1 January 2008 to 30 June 2008 in accordance with the 2007 Determination and relevant Guidelines. Under the Guidelines Aurora was required to provide a Network Tariff Submission and retail Tariff Submission by 30 November 2007.

Network Tariff Submissions:
Request to delay submission received 3 December 2007
Documents received 10 December 2007: Documents received 20 December 2007 Letter of 24 December advising of review of Network Tariffs for Business Customers
Documents received 2 January 2007
Retail Tariff Submissions:
Documents received 13 December 2007 Documents received 20 December 2007 Documents received 4 January 2007



Approvals under the 2003 Determination










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