Talk the Tariff Talk: An introduction to Energex’s new tariff structure

In light of Energex’s recently updated Tariff Structure Statement 2020-25 (June 2019) [An Overview is available here] that we have been patiently awaiting for some time, we thought we’d be the first to offer you some expert guidance in understanding the ins and outs of the new tariff options available for your residence or business.

If you follow our blog and social media accounts over the next few months, you’ll come across regular information from us, as we update you on Energex’s consultation process with stakeholders and customers to reform tariffs that will conclude with their final tariff plan being released in October 2019.

Energex knows that electricity affordability is a critical issue for its customers – both from a cost of living and a business competitiveness standpoint. We are here to help you access the savings that are possible from Energex’s new network tariff plans.

But first, some terms.

Baffling tariffs and terms.

Currently, Energex offers a range of network tariff options, and they primarily consist of fixed and variable components. They also offer several demand-based network tariffs. What they are proposing with the new tariff structure is to progressively migrate customers to more ‘cost-reflective’ network tariffs.

We won’t go into it all here (we’ll do that another time), but if you want to see the new network tariff options for each customer segment, they appear on page 10 of the Tariff Structure Statement Overview. The customer segments are named: New Residential Network Tariffs; New Business Network Tariffs; Connection Asset Customer (CAC) Network Tariffs; and Individually Calculated Customer (ICC) Network Tariffs.

In order to understand the tariff structure, there are some terms you’ll need to understand first: Basic, Demand, Capacity, Control Load, Primary Tariff, and Secondary Tariff. To start you off, we’ll define Residential Basic and Business Basic network tariffs:

Residential Basic is a daily fixed charge and inclining block energy charge per kWh, with blocks increasing in 10,000 kWh per annum increments applying to all consumption.

Business Basic is a daily fixed charge and inclining block energy charge per kWh, with blocks increasing in 20,000 kWh per annum increments applying to all consumption.

Got it? We’ll explain some more terms next time.

Tariff conversation and consultation.

Energex’s reform of their tariff structure is long overdue, given that many of their existing legacy tariffs were developed in the early 1990s period when there was no widespread proliferation of rooftop solar and air-conditioning, or batteries and electric vehicles, as there are today. As such, many of their customers then had similar energy needs, allowing Energex to provide generic tariffs to recover their network supply costs.

Now, with large-scale uptake of energy-intensive appliances and new technology to supplement or alter access to energy, it means that their current tariffs no longer support a fair and equitable allocation of network costs, and this affects Energex’s ability to develop.

Their current consultation with stakeholders and customers is guiding them in their preparation of a suite of new tariffs that will address these challenges and continue to deliver affordability and choice to customers.

Get in contact and in control.

Get involved in the tariff conversation and consultation with Energy Partners and Energex! We’ll help you access greater levels of customer choice, and more control over your power bills.

Get in touch with one of our experts in our Brisbane office via our contact page
https://www.energypartners.com.au/contact/ or email
jay@energypartners.com.au