Projects

Variation to 2012 Determination of the Solar Feed-in Tariff Premium

Stage:
Final
Released:
27 Jun 2013
Closes:
27 Jun 2013
Project Type:
Pricing & access
Contact Person:
Nathan Petrus

The Commission has varied its 2012 determination of the Feed-in Tariff (FiT) Premium, to reduce the value of FiT Premium to apply from 1 July 2013 from 11.2c/kWh to 9.8c/kWh. The reduction has been determined to ensure that the FiT premium continues to reflect the fair and reasonable value to a retailer of electricity fed into the network.

The Commission has released its Draft Price Determination to apply from 1 July 2013 to 31 December 2016.

The Commission’s draft decision is to set the feed-in tariff premium at 9.8 cents per kWh from 1 July 2013 to 31 December 2013, revised from the previously determined 11.2 cents per kWh. The proposed amount represents the minimum FiT premium that must be made available to PV customers. Electricity retailers may voluntarily pass on a higher amount as part of their unregulated market offers.

The revised premium reflects the reduction in the value of wholesale electricity relative to the value that was forecast under the Commission's 2012 FiT premium determination.

Under the Commission’s proposed determination, the FiT premium will be reset on 1 January for each of the following 3 years (until 31 December 2016) using a set methodology. The annual update of the FiT Premium will ensure that the amount is based on the most up to date information, including demand forecasts made by the Australian Energy Market Operator (AEMO) towards the end of each financial year.

The Commission has called for submissions to the Draft Price Determination by 22nd April 2013.

Publications

The Commission has determined the Feed-in Tariff (FiT) premium to apply from 1 July 2013.

The Commission has varied the initial and current determination of the FiT premium which was originally issued in January 2012. The Variation to the 2012 Solar Feed-in Tariff Premium Price Determination outlines the Commission’s statement of reasons to vary the original determination.

The Commission’s variation to the 2012 Determination specifies that the minimum FiT Premium to apply from 1 July 2013 until 31 December 2013 is 9.8 cents per kWh, revised from the previously determined 11.2 cents per kWh. The revised premium reflects the reduction in the value of wholesale electricity relative to the value that was forecast under ESCOSA’s 2012 FiT premium determination.

The prescribed amount represents the minimum FiT premium that must be made available to PV customers. Electricity retailers may voluntarily pass on a higher amount as part of their unregulated market offers.

The FiT premium determination made by ESCOSA in 2012 was due to expire on 30 June 2014. The Commission has brought forward that expiry date to 31 December 2013, to reflect the review it is undertaking on both the need for or nature of future price regulation of the FiT premium. The outcome of that review is expected to apply from 1 January 2014.

Publications