The Commission conducted a review to determine if any changes should be made to the cost components that make up the standing contract electricity retail prices, to apply from 1 January 2004.
In October 2003 the Commission commenced a process of consultation to inform itself on the changes (if any) that might be justified to the component costs of the standing contract electricity retail prices. This process was not a formal Inquiry nor was it a formal price determination under Part 3 of the ESC Act.
The purpose of the work was to inform the Commission on the cost components of the retail price as they might apply for 2004, relative to the levels set out in Guideline No 10 for 2003 supply (and hence whether Guideline 10 needed to be changed).
As part of the consultation process the following documents were released by the Commission, including submissions made in response to Commission publications and relevant consultant reports.
The Commission received 7 submissions in response to the Discussion Paper released in October 2003.
The Commission released an Issues Paper and relevant consultant reports.
The Commission received the following submissions to the Issues Paper.
The Commission concluded that it is appropriate for Guideline No 10 to be amended to incorporate a revised set of cost components for 2004 standing contract supply. The overall impact on the average consumer is a reduction of about $5 per annum in a total bill of about $1000.
However, on the basis that there has been a reduction in net revenue to AGL SA as a result of the Commission’s decision on 24 December 2003 to approve a pass-through of costs to ETSA Utilities, the Commission believes that, overall, its conclusions do not justify a change in the standing contract prices from 1 January 2004.
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