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.
With the expiry of the Electricity Supply Industry Amendment (Pricing) Act 2017 on 2 June 2020, the Treasurer no longer has the legislative power to make a WEP Order.
Further, under s41(1AA) of the Electricity Supply Industry Act 1995, 2020-21 was the last financial year when:
- the increase in standing offer prices was capped by the increase in the Consumer Price index; and
- the Treasurer had the legislative power to affect the Regulator's approval of standing offer prices by making a Ministerial Notice.
Wholesale Electricity Price (WEP)
The Tasmanian Economic Regulator calculates the WEP in accordance with section 40AB of the Electricity Supply Industry Act 1995 applying the method set out in the relevant Annual Standing Offer Price Approval Guideline. The method uses the weekly load following swap prices calculated in accordance with the Wholesale Contract Regulatory Instrument.
This method was not used when a Wholesale Electricity Price Order was made. The Treasurer determined the WEP by a Wholesale Electricity Price Order for 2017-18, 2018-19 and 2019-20.
The annual value for the WEP under the 2022 Standing Offer Determination is as follows:
2024-25
| Tasmanian Economic Regulator
| 8.433 c/kWh ($84.33/MWh)
|
2023-24
| Tasmanian Economic Regulator
| 10.115 c/kWh ($101.15/MWh)
|
The annual values for the WEP under the 2016 Standing Offer Determination are as follows:
2016-17
| Tasmanian Economic Regulator
| 6.190 c/kWh ($61.90/MWh)
|
| 2017-18 | Wholesale Electricity Price Order
| 8.379 c/kWh ($83.79/MWh) |
| 2018-19 | Wholesale Electricity Price Order
| 7.968 c/kWh ($79.68/MWh) |
| 2019-20 | Wholesale Electricity Price Order | 8.756 c/kWh ($87.56/MWh) |
| 2020-21 | Tasmanian Economic Regulator | 7.962 c/kWh ($79.62/MWh) |
| 2021-22 | Tasmanian Economic Regulator | 6.056 c/kWh ($60.56/MWh) |
The annual values for the WEP under the 2013 Standing Offer Determination are as follows:
2014-15
| Tasmanian Economic Regulator
| 5.2666 c/kWh ($52.666/MWh)
|
| 2015-16 | Tasmanian Economic Regulator | 5.1283 c/kWh ($51.283/MWh)
|
Approvals under the 2022 Standing Offer Price Determination
Approved prices for 1 July 2024 to 30 June 2025
On 31 May 2024, Aurora Energy provided the Regulator with its Standing Offer Pricing Proposal for the period from 1 July 2024 to 30 June 2025. In relation to Aurora Energy’s calculation of network costs, the Regulator identified an error regarding the network load for Tariff 94. Aurora Energy submitted a revised pricing proposal and price schedule on 4 June 2024 that corrected this error. The correction made in the revised proposal resulted in a $3.97 million reduction in Aurora Energy’s costs and a reduction of 0.62 percentage points in its proposed average price increase.
Aurora Energy submitted the following documents in support of its revised proposed prices for 2024-25:
Approved pries for 1 July 2023 to 30 June 2024
On
31 May 2023, Aurora Energy
provided the Regulator with its Standing Offer Pricing Proposal for the period
from 1 July 2023 to 30 June 2024. Following thce
Regulator's initial review, several minor changes to the pricing proposal
and tariff schedule were requested by the Regulator to correct some typographical errors and improve
readability. Aurora Energy submitted a revised pricing proposal on 9 June 2023
and a revised tariff schedule on 13 June 2023 that addressed these issues.
On 31 May 2022, Aurora Energy provided the Regulator with its Standing Offer Pricing Proposal for the period from 1 July 2022 to 30 June 2023. Following the Regulator's initial review, Aurora Energy corrected some minor errors and provided a revised proposal on 10 June 2022.
Since this Guideline was published in May 2016, the Government has made a number of changes to the Electricity Supply Industry Act 1995 that affect the annual price approval process. These changes include:
- allowing the Treasurer to issue an order to declare an alternative WEP to that calculated under the Wholesale Contract Regulator Instrument;
- that the Regulator can only approve standing offer prices submitted to it that are no higher than the existing tariffs indexed by the percentage change in the Consumer Price Index number for Hobart for the applicable years; and
- extending the application of the current retail price determination until 30 June 2021.
The Guideline has been revised to align with the current legislation and is available here.
Approvals under the 2016 Standing Offer Price Determination
Approved prices for 1 July 2021 to 30 June 2022
On 31 May 2021, Aurora Energy provided the Regulator with its Standing Offer Pricing Proposal for the period from 1 July 2021 to 30 June 2022. Following the Regulator's initial review, Aurora Energy corrected some minor errors and provided a revised proposal on 15 June 2021.
Aurora Energy submitted the following documents in support of its proposed prices for 2021-22:
The Regulator verified that the proposed standing offer prices met the requirements set out in the Determination, the Price Approval Guideline and the Electricity Supply Industry Act 1995.
On 21 June 2021, the Regulator approved the standing offer prices for the period 1 July 2021 to 30 June 2022. The Regulator's media release is available here.
Approved prices for 1 July 2020 to 30 June 2021
On 28 May 2020, Aurora
Energy provided the Regulator with its Standing Offer Pricing Proposal for the
period from 1 July 2020 to 30 June 2021.
Following his review, the Regulator required Aurora Energy to change its 2020-21 load
forecasts to remove the proposed adjustments relating to the possible impact of COVID-19 on electricity consumption and its
forecast of the number of advanced meters that were expected to be installed
during 2020-21. Aurora Energy made the requested changes and provided a revised
proposal on 18 June 2020.
Aurora Energy
submitted the following documents in support of its proposed prices for
2020-21:
Approved prices for 1 July 2019 to 30 June 2020
On 30 May 2019, Aurora Energy submitted its Standing Offer Pricing Proposal for the period 1 July 2019 to 30 June 2020. Following the Regulator’s initial review, Aurora Energy corrected some minor errors and provided a revised proposal on 11 June 2019.
Aurora Energy submitted the following documents:
Aurora Energy Standing Offer Pricing Proposal for 2019-20 (229Kb)
Aurora Energy Internal Audit Certificate (614Kb)
Aurora Energy Directors Certification (286Kb)
The Aurora Energy Standing Offer Tariff Schedule can be found here.
The Regulator reviewed the Standing Offer Pricing Proposal against the requirements set out in the Determination, the Price Approval Guideline, the WEP Order and the Ministerial Notice.
On 20 June 2019, after confirming that the Pricing Proposal met the relevant requirements, the Regulator approved the standing offer prices for the period 1 July 2019 to 30 June 2020. A copy of the Regulator’s Decision Paper is available here.
The Regulator approved a uniform price increase of 2.0 per cent in 2019-20 in the daily supply charge, the energy (usage) charge per kWh and in the annual charge per kVA for all tariffs.
The Regulator's Media Release is available here.
Approved prices for 1 July 2018 to 30 June 2019
On 31 May 2018, Aurora Energy submitted its Standing Offer Pricing Proposal for the period 1 July 2018 to 30 June 2019. Following the Regulator's initial review, Aurora Energy corrected some minor errors and provided a revised proposal on 12 June 2018.
Aurora Energy submitted the following documents:
Aurora Energy 2016 Determination Pricing Proposal Period 3 (484Kb)
Aurora Energy 2016 Determination Internal Audit Certificate Period 3 (618Kb)
Aurora Energy 2016 Determination Directors Certification Period 3 (382Kb)
Aurora Energy Standing Offer Tariff Schedule 2018-19 (66Kb)
The Regulator
reviewed the Standing Offer Pricing Proposal against the requirements set out
in the Determination, the Price Approval
Guideline, the WEP Order and the Ministerial
Notice.
On 20 June 2018, after confirming
that the Pricing Proposal met the relevant requirements, the Regulator approved
the standing offer prices for the period 1 July 2018 to 30 June 2019.
The Regulator approved a uniform price
increase of 2.05 per cent in 2018-19 in the daily supply charge, the energy
(usage) charge per kWh and in the annual charge per kVA for all tariffs.
The Regulator's Media Release is
available here.
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 Internal 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.