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 (including Bruny Island) for services provided under standard retail contracts.

Standing offer prices are adjusted each year in accordance with the requirements outlined in the relevant standing offer determination, standing offer price approval guideline, standing offer price strategy, Wholesale Electricity Price (WEP) Orders and Ministerial Notices.

Approvals under the 2016 Standing Offer Price Determination (July 2016)

Approved prices for 1 July 2017 to 30 June 2018

On 30 May 2017, Aurora Energy submitted its preliminary Standing Offer Pricing Proposal for the Period 1 July 2017 to 30 June 2018.

Aurora Energy's proposal was preliminary as, at that time, the Wholesale Electricity Price (WEP) that would apply to Aurora Energy's price calculations for the 2017-18 financial year was unknown.

This was due to the Tasmanian Government's introduction to Parliament, on 2 May 2017, of the Electricity Supply Industry Amendment (Pricing) Bill 2017. The amendments in the Bill provided the Treasurer with the power to:

  • set the wholesale electricity price that is used in calculating the Wholesale Electricity Cost in the Notional Maximum Revenue (NMR) by means of a WEP Order; and
  • issue a Ministerial Notice specifying the criteria the Regulator must take into account when assessing proposed standing offer prices.

The Bill received Royal Assent on 2 June 2017 and, on 13 June 2017, the Regulator received a letter from the Treasurer advising of the making of a WEP Order and the issuing of a Ministerial Notice which set out the criteria the Regulator was to take into account when approving standing offer prices for the 2017-18 financial year.

On 14 June 2017, Aurora Energy submitted its draft Standing Offer Pricing Proposal. The Regulator reviewed the proposal and identified issues with Aurora Energy's proposed approach to the recovery of metering costs. On 16 June 2017 the Regulator requested that Aurora Energy remodel these costs and resubmit its proposal. Aurora Energy's submitted its revised Standing Offer Pricing Proposal on 19 June 2017.

Aurora Energy submitted the following documents:

  Aurora Energy 2016 Determination Pricing Proposal Period 2   (267Kb)

  Aurora Energy 2016 Determination Internal Audit Certificate Period 2   (456Kb)

  Aurora Energy 2016 Determination Directors Certification Period 2   (153Kb)

  Aurora Energy Standing Offer Price Schedule 2017-18   (119Kb)

The Regulator reviewed the Standing Offer Pricing Proposal against the requirements set out in the Determination, the Price Approval Guideline, the Price Strategy, the WEP Order and the Ministerial Notice.

On 22 June 2017, after confirming that the Pricing Proposal met the relevant requirements, the Regulator approved the standing offer prices for the period 1 July 2017 to 30 June 2018. The Regulator's Media Release is available here.

Approved prices for 1 July 2016 to 30 June 2017

On 30 May 2016, Aurora Energy submitted its draft Standing Offer Pricing Proposal for the period 1 July 2016 to 30 June 2017.

Distribution network costs for 2016-17 were not available at that time as the Australian Energy Regulator (AER) was yet to approve TasNetworks' 2016-17 Distribution Pricing Proposal.

The AER subsequently approved TasNetworks' Pricing Proposal on 8 June 2016 and Aurora Energy submitted its final Standing Offer Pricing Proposal on 9 June 2016.

Aurora Energy submitted the following documents:

  Aurora Energy 2016 Determination Pricing Proposal Period 1   (613Kb)

  Aurora Energy 2016 Determination Internal Audit Certificate Period 1   (404Kb)

  Aurora Energy 2016 Determination Directors Certification Period 1   (148Kb)

  Aurora Energy Standing Offer Price Schedule 2016-17   (119Kb)

The Regulator reviewed the Standing Offer Pricing Proposal against the requirements set out in the Determination, Price Approval Guideline and Price Strategy.

On 16 June 2016, after confirming that the Pricing Proposal met the relevant requirements, the Regulator approved the standing offer prices for the period 1 July 2016 to 30 June 2017. The Regulator's Media Release is available here.

In response to an error identified by Aurora Energy, the Regulator subsequently released an amended Determination on 29 June 2016. The amendments to the Determination did not impact on the Regulator's approval, on 16 June 2016, of the standing offer prices to apply from 1 July 2016.

On 29 June 2016 Aurora Energy advised the Regulator that it had identified an error in its Standing Offer Price Schedule. The Schedule incorrectly specified the days of the week listed for "Peak" "Tariff rate" under the "Business Time-of-Use (TOU) - Tariff 94" as "Mon-Sun" rather than "Mon-Fri".

Aurora Energy submitted a revised Standing Offer Price Schedule which the Regulator approved on 6 July 2016 after verifying that the Schedule specified the correct period for the "Peak" "Tariff rate" for Tariff 94 ie "Mon-Fri".

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

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:

  Aurora Energy 2013 Determination Pricing Proposal Period 3   (589Kb)

  Aurora Energy 2013 Determination Interal Audit Certificate Period 3   (218Kb)

  Aurora Energy 2013 Determination Directors Certification Period 3   (150Kb)

  Aurora Energy Standing Offer Price Schedule 2015-16   (89Kb)

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. The Regulator's media release is available here.

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:

  Aurora Energy 2013 Determination Pricing Proposal Period 2   (615Kb)

  Aurora Energy 2013 Determination Prior Year Cost Adjustments Period 2   (129Kb)

  Aurora Energy 2013 Determination Internal Audit Certificate Period 2   (224Kb)

  Aurora Energy 2013 Determination Directors Certification Period 2   (153Kb)

  Aurora Energy Standing Offer Price Schedule 2014-15   (76Kb)

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. The Regulator's media release is here.

Approvals under the 2013 Standing Offer Determination (Aurora Energy) (3 March 2014 to 30 June 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 one submission on the proposed changes), the Regulator released an amended determination on 28 February 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.

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. The Regulator's media release is here.

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.

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:

  Aurora Energy 2013 Determination Pricing Proposal Period 1B   (178Kb)

  Aurora Energy 2013 Determination Internal Audit Certificate Period 1B   (238Kb)

  Aurora Energy 2013 Determination Internal Audit Report Period 1B   (242Kb)

  Aurora Energy 2013 Determination Directors Certification Period 1B   (154Kb)

  Aurora Energy Standing Offer Price Schedule January to June 2014   (73Kb)

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. The Regulator's media release is here.

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:

  Aurora Energy 2013 Determination Pricing Proposal Period 1A   (706Kb)

  Aurora Energy 2013 Determination Prior Year Cost Adjustments Period 1   (275Kb)

  Aurora Energy 2013 Determination Tax Event Period 1A   (712Kb)

  Aurora Energy 2013 Determination Internal Audit Certificate Period 1A   (249Kb)

  Aurora Energy 2013 Determination Internal Audit Report Period 1A   (434Kb)

  Aurora Energy 2013 Determination Directors Certification Period 1A   (151Kb)

  Aurora Energy Standing Offer Price Schedule July to December 2013   (82Kb)

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.

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