Under the licensing provisions of the Electricity Act 1996, the Commission authorises South Australia's principal distribution network service provider, ETSA Utilities, to provide electricity distribution services at certain set standards and prices.
The Commission released its final 2005 to 2010 Electricity Distribution Price Determination ("the Price Determination) in March 2005, reflecting its decisions on the price controls and service standards to be applied to ETSA Utilities from 2005 to 2010, following an extensive consultation process extending over a two and a half year period.
The Commission consulted on a series of papers between December 2001 and October 2004 on various key issues relating to the 2005 to 2010 Electricity Distribution Price Determination. These separate consultation processes provided important inputs into the Commission’s draft and final determinations.
All papers released as part of these consultation processes can be accessed in the EDPR 2005-10 Sub Projects.
In November 2004, the Commission released its draft Price Determination on ETSA Utilities' distribution charges for all customers for the period 1 July 2005 to 30 June 2010. The draft price determination results in an initial one off adjustment of prices on 1July 2005, which is a reduction in the average revenue that ETSA Utilities can recover across all customer groups of 7%. Following this, the average revenue will change by the CPI less an X factor of 1.3% for each year commencing 1 July 2006.
The Commission received 7 submissions on the Draft Price Determination
In April 2005, the Commission released its final Price Determination on ETSA Utilities' distribution charges for all customers for the period 1 July 2005 to 30 June 2010. The final determination substantially confirmed the Commission's December 2004 draft decision.
The final determination resulted in a modest fall in network charges for the average household of about $60 per year from 1 July 2005. Network prices will increase by CPI in each subsequent year of the regulatory period.
On 19 April 2005, ETSA Utilities submitted an application to the Commission for the review of the final Price Determination. The application sought review of four aspects of the Price Determination:
In June 2005, the Commission released its decision on the review application, which:
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