Electricity Model and Methodology Review 2018-19

Final Report: Electricity Model and Methodology Review 2018-19

On Friday, 31 May 2019, the Commission released its final decision on the Electricity Model and Methodology Review 2018–19.

The report sets out the model and methodology the Commission intends to use during the next price investigation to set regulated retail electricity prices from 1 July 2020.

A copy of the final report is available below.

Public Forum: Electricity Model and Methodology Review

As part of the Electricity Model and Methodology Review, the Commission held a public forum at 11am on Monday, 15 April 2019 at the Canberra Museum and Gallery, Canberra City ACT 2601.

The public forum included a presentation, which outlined the Commission’s draft decisions. A copy of the transcript of proceedings can be found below.

Draft Report: Electricity Model and Methodology Review 2018–19

On 4 April 2019, the Commission released a draft report on the Electricity Model and Methodology Review 2018–19.

The report sets out the Commission’s draft decisions on the pricing model and methodology for the supply of electricity to small customers on ActewAGL Retail’s regulated tariffs.

A copy of the draft report is available below.

Submissions on the draft report are invited. The submissions closed Thursday, 2 May 2019.

Submissions on draft report

Commission's information requests

To assist it in better understanding the nature and relative importance of the various components of retail operating costs, the Commission sought confidential information from ActewAGL Retail in three information requests, made on 5 and 10 October 2018 and 11 February 2019. ActewAGL Retail provided the Commission with the requested information as well as additional explanation to assist the Commission.

The Commission’s information requests are available below.

Commission releases a technical paper on energy purchase costs

As part of the electricity model and methodology review, the Commission, on 1 February 2019, released a technical paper on energy purchase costs, which includes an expert report prepared by Frontier Economics.

The technical paper seeks stakeholder submissions on Frontier Economics’ findings and recommendations and outlines key issues on which the Commission would welcome stakeholder views.

The closing date for submissions is 26 February 2019.

A copy of the technical paper and Frontier Economics’ report is available below. A spreadsheet illustrating how the energy purchase costs can be calculated using the approach recommended by Frontier Economics is available on request. For a copy of the spreadsheet please email the Commission at icrc@act.gov.au

Submissions - Technical Paper

Commission releases Issues Paper on Electricity Model and Methodology Review 2018-19

The Independent Competition and Regulatory Commission is currently undertaking a review of its pricing model and methodology (Review) for the supply of electricity to small customers on ActewAGL Retail’s regulated tariffs. This Review seeks to ensure that the Commission’s pricing model is accurate, reflects current market conditions and retailer practices, and is consistent with the Commission’s obligations under the Independent Competition and Regulatory Commission Act 1997 in setting prices from 1 July 2020.

The Review was established as a reset principle in the Commission’s 2017–20 Price Direction for standing offer prices for the supply of electricity to small customers.

The Commission released an issues paper on Electricity Model and Methodology Review 2018–19 on the 15 October 2018. This issues paper begins the consultation process for the Review.

A copy of the issues paper is available below. The closing date for submissions on the issues paper is Friday, 16 November 2018.

On Wednesday, 24 October 2018, the Commission released a technical appendix providing background to the issues paper released on 15 October 2018.

This technical appendix presents a mathematical summary of the Commission’s current electricity pricing model.

A copy of the technical appendix is available below.

Submissions - Issues Paper