Energy regulator gives green light to increase network charges in Victoria
The price of power is set to increase from January 1 next year, with all Victorian households set to be affected. Here’s how much more you could be paying in 2020.
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Power bills are expected to rise by as much as $50 for households from January because of transmission costs and state land taxes.
The Australian Energy Regulator yesterday gave electricity distributors the green light to push up network charges that cover the cost of delivering electricity.
The price rise is expected to add up to $53 to annual household bills and up to $212 for small businesses.
In total, Victorian households will pay an extra $98.04 million next year in network charges.
The AER said the cost of transmission a key factor in the 2020 tariffs and made up 81 per cent of the increase.
Among the reasons, it said, were rising Victorian land taxes and the increased cost pressure of more power travelling long distances from interstate.
Network charges are usually passed on by retailers to consumers and make up as much as much as half of a typical bill.
The changes will take effect from January 1 next year.
“Our first principle is that consumers should pay no more than necessary for safe and reliable energy,” AER chair Clare Savage said.
“Over the last five years, most Victorian consumers have paid less or around the same for the network of poles and wires delivering power to their houses and business.”.
Higher network charges are expected to add $53.04 to an average annual household bill in the United Energy zone, $46 in the Powercor area, $38.16 in the AusNet Services region, $37.26 in the Jemena zone, and $26.14 in the CitiPower region.
Small businesses will cop estimated increases ranging from $99.28 to $212.27, depending on location.
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Since 2016, revenues have risen for CitiPower and United Energy but have fallen for AusNet, Jemena and Powercor.
Energy Networks Australia chief executive Andrew Dillon said several factors were behind the increases, including land taxes charged on transmission easements in Victoria.
“Victoria’s electricity networks are focused on delivering reliable electricity to customers at some of the lowest rates in the country,” he said.
AusNet is expected to pay an extra $27 million in land tax for its easements over the current financial year.