The Commission regulates the prices that South Australian residential and small business customers are allowed to be charged under the electricity standing contract. The standing contract is the retail electricity contract that AGL South Australia Pty Ltd (AGL SA) must offer to all South Australian small customers (customers consuming less than 160MWh per annum). A customer that has not actively negotiated a market contract with an energy retailer is most likely to be on a standing contract. It is noted that less than a third of all residential electricity customers now purchase electricity under the standing contract as the majority have moved to market contracts.
The electricity standing contract price is built up from two components: network and retail charges. The network component consists of ElectraNet’s transmission tariffs and ETSA Utilities’ distribution tariffs and comprises approximately 45% of a typical residential annual electricity bill. The retail component makes up the remaining 55% of a typical residential bill, and consists of AGL SA’s retailer tariffs which include the cost of energy and retail operating costs.
In summary, electricity standing contract prices will change on 1 August 2010 to reflect the following:
For a typical residential customer (annual electricity consumption 5,000 kWh), it is estimated that the average quarterly residential electricity bill in 2010 will increase by 5.57%, this equates to a quarterly increase of $15.15.
The Commission is presently conducting an Inquiry into electricity standing contract prices to apply from January 2011 (refer separate article in this Newsletter).
2010 Annual Electricity Retail Tariff Adjustment