Retailer Feed-in Tariff 2016 Price Determination
In December 2014 the Commission published the 2015-2016 Retailer Feed-in Tariff Price Determination (2015 Determination) and accompanying Statement of Reasons.
The 2015 Determination set the minimum R-FiT of 5.3 cents per kWh for calendar year 2015 and established the methodology for determining the 2016 R-FiT. The Commission is applying the methodology to the latest evidence available to set a minimum R-FiT to apply from 1 January 2016 to 31 December 2016.
In December 2014, the Commission published the 2015-2016 Retailer Feed-in Tariff Price Determination (2015 Determination) and accompanying Statement of Reasons. The 2015 Determination set the minimum Retailer Feed-in Tariff (R-FiT) of 5.3 cents per kWh for calendar year 2015 and set out the method for determining the 2016 R-FiT.
The 2015 Determination stated that if such analysis showed that the R-FiT for calendar year 2016 varies by less than 10% from the 2015 value (that is, it falls within the range of 4.77 to 5.83 cents per kWh), the Commission will leave that value unchanged.
The Commission has engaged ACIL Allen Consulting to apply the models and methodologies used in the 2015 Determination to forecast the value to electricity retailers of fed-in electricity in 2016. ACIL Allen Consulting's report indicates a 2016 minimum R-FIT of 6.8 cents per kWh.
The consultant's report will form a key input to the Commission's decision on the 2016 minimum Retailer Feed-in Tariff, which the Commission will publish in December 2015. The methodology is explained in the report below.
The Commission seeks stakeholder views on the modelled R-FiT outcome (not the methodology) prior to 6 November 2015.
The Commission has received one submission, from Simply Energy, in response to the publication of the ACIL Allen Consulting report.
The Commission has released the final decision on the 2016 minimum retailer feed-in tariff (R-FiT).
The decision is that the minimum R-FiT for 2016 is 6.8 cents per kWh. This is the minimum amount that energy retailers must pay to residential and small business customers for the electricity they export into the grid. Retailers are free to offer their customers more than the minimum R-FiT. The decision takes into account the latest available information, including the announcement of the closure of the Northern Power Station at Port Augusta on or about 31 March 2016.