Projects

Electricity retailer feed-in tariff - Review of regulatory arrangements

Stage:
Submissions
Released:
26 Apr 2016
Closes:
22 Oct 2016
Project Type:
Pricing & access
Contact Person:
Nathan Petrus

The Commission has a role under the Electricity Act 1996 and the ESC Act 2002 to decide whether or not to regulate the retailer-paid feed-in tariff (R-FiT), which is paid to solar PV customers who export surplus electricity into the grid. A regulated minimum R-FiT has been set in each calendar year since 2012. The retail electricity market was deregulated in South Australia in February 2013, leaving the R-FiT as a regulated component within a deregulated market. Following analysis by the Australian Energy Market Commission in 2014 and 2015, which found the retail electricity market in South Australia to be competitive, the Commission will inquire as to whether it is necessary and appropriate to set an R-Fit for 2017.

The Commission has commenced its review with the release of an Issues Paper, which seeks comments from stakeholders on the degree of competition for solar customers and the Commission's proposed methodology.

The Commission can determine whether or not there should be a minimum regulated retailer-paid feed in tariff (R-FiT) which must be paid to residential and small business electricity customers with solar photovoltaic generators (PV customers). If it determines that there should be such a minimum tariff, it also has the power to set the value of it from time to time.

The Commission has set a minimum R-FiT for each of the calendar years 2012 to 2016. In setting the R-FiT, the Commission must have regard to a range of factors in both the Electricity Act 1996 and the Essential Services Commission Act 2002. These include a consideration of the fair and reasonable value to a retailer of fed-in solar PV and whether the costs of regulation exceed the benefits.

The Commission is commencing a review to determine if a minimum R-FiT value should continue to be set from 2017.

Subject to the findings it makes, the Commission will then either move to determine an appropriate value for the R-FiT or will put in place alternative arrangements without setting an R-FiT.

If it does not set an R-FiT for 2017, the Commission can nevertheless reintroduce an R-FiT payment at any time should conditions justify that action.

This issues paper discusses the factors the Commission intends to consider in undertaking its assessment and invites submissions from stakeholders, ahead of commencing its review.

Submissions are due by COB 22 April 2016.

Publications

The Commission received 14 submissions to the issues paper for the review of the regulatory arrangements for the South Australian electricity retailer feed-in tariff.

The Commission will review those submissions and take any relevant matters into consideration prior to publishing a draft report in June 2016.

The Commission publishes submissions as an information source only. It does not guarantee or warrant the accuracy, completeness or currency of any information contained in submissions. Any person accessing or relying on a submission published below is responsible for assessing and verifying the information contained within it.

The Commission disclaims all responsibility and liability (including, without limitation, liability in negligence) for all expenses, losses, damages, costs or other injury incurred by any person accessing or relying on a submission published below as a result of the information contained in that submission being inaccurate or incomplete in any way.

Submissions