Electricity Supply Industry Pricing Order 2002
I, the Regulator, on the request of the Minister under regulation 21B(1) of the Electricity Supply Industry (Price Control) Regulations 1998 make the following order under that regulation.
4 December 2002A. J. REEVES
Regulator
PART 1 - Preliminary
This order may be cited as the Electricity Supply Industry Pricing Order 2002 .
This order takes effect on 1 January 2003.
(1) In this order –base retail allowance means the amount calculated in accordance with clause 8(2);customer class means the –as referred to in the electricity price determination;(a) business high voltage sector; or(b) business low voltage sector; or(c) residential sector –declared ancillary services has the same meaning as in Part 3A of the Electricity Supply Industry (Price Control) Regulations 1998;electrical service has the same meaning as in the Electricity Supply Industry (Price Control) Regulations 1998 ;electricity price determination has the same meaning as in Part 3A of the Electricity Supply Industry (Price Control) Regulations 1998;fixed charges includes fixed daily services charges and fixed meter charges;kWh means kilowatt hour;notional maximum revenue has the same meaning as in the electricity price determination;over or under-recoveries has the same meaning as in Part 3A of the Electricity Supply Industry (Price Control) Regulations 1998;prescribed inflationary factor in respect of calendar year 2003 is 1.028;renewable energy certificate has the same meaning as in Part 3A of the Electricity Supply Industry (Price Control) Regulations 1998;tariff customer has the same meaning as in Part 3A of the Electricity Supply Industry (Price Control) Regulations 1998.(2) The Acts Interpretation Act 1931 applies to the interpretation of this order as if it were by-laws.
PART 2 - Maximum charges
In calendar year 2003, the maximum price per kWh payable for energy generated by the Hydro-Electric Corporation and sold to Aurora Energy Pty Ltd for the purposes of supply to tariff customers is the amount of the maximum price per kWh for such energy payable on 31 December 2002 multiplied by the prescribed inflationary factor.
In calendar year 2003, the maximum annual charges payable for declared ancillary services provided by the Hydro-Electric Corporation is the total amount for those charges payable in calendar year 2002 multiplied by the prescribed inflationary factor.
6. Transmission network services
(1) In calendar year 2003, the maximum amount payable for transmission network services provided by Transend Networks Pty Ltd is the maximum amount payable for those services in calendar year 2002 multiplied by the prescribed inflationary factor plus –(a) any over or under-recoveries in allowable revenues from calendar year 2002; and(b) the impact of any differences between the actual capital expenditure approved by the Regulator and the relevant Capital Expenditure Budget referred to in Schedule 2 of the electricity price determination.(2) The maximum amount payable in calendar year 2003 calculated under subclause (1) is to be allocated in the same manner as provided in clause 8 of the electricity price determination.
7. Distribution network services
(1) In calendar year 2003, the maximum amount payable for distribution network services provided by Aurora Energy Pty Ltd is the maximum amount payable for those services in calendar year 2002 multiplied by the prescribed inflationary factor plus –(a) any over or under-recoveries in allowable revenues from calendar year 2002; and(b) the impact of any differences between the actual capital expenditure approved by the Regulator and the relevant Capital Expenditure Budget referred to in Schedule 3 of the electricity price determination.(2) The maximum amount payable in calendar year 2003 calculated under subclause (1) is to be allocated in the same manner as provided in clause 10 of the electricity price determination.
(1) In calendar year 2003, the notional maximum revenue for a customer class is the sum of –(a) the base retail allowance for calendar year 2003 for that customer class; and(b) that part of the amount for transmission network services determined under clause 6 that is allocated by Aurora Energy Pty Ltd to that customer class on the same basis as the allocation of the amount for those services under the electricity price determination in respect of calendar year 2002; and(c) that part of the amount for distribution network services determined under clause 7 that is allocated by Aurora Energy Pty Ltd to that customer class on the same basis as the allocation of the amount for those services under the electricity price determination in respect of calendar year 2002; and(d) the approved budgeted costs for calendar year 2003 for electrical safety and system controller, including declared ancillary services, allocated to that customer class on the same basis as for calendar year 2002; and(e) the proportion of costs, based on the proportion of electricity forecast to be sold to tariff customers during calendar year 2003, allocated to that customer class in relation to the establishment of the systems used by that customer class for purchasing renewable energy certificates; and(f) the proportion of costs, based on the proportion of electricity forecast to be sold to tariff customers during calendar year 2003, allocated to that customer class in relation to the purchase of renewable energy certificates in respect of the period 1 January 2002 to 31 December 2003.(2) For a customer class, the base retail allowance for calendar year 2003 is calculated in accordance with the following formula:where –BRA is the base retail allowance for calendar year 2003;NMR is an amount equal to the notional maximum revenue for calendar year 2002;E is the total expenses allowed in calendar year 2002 in respect of the relevant customer class for the following services:(a) electrical safety;(b) transmission network services;(c) distribution network services;(d) system controller services, including declared ancillary service charges;PIF is the prescribed inflationary factor for calendar year 2003.
9. King Island and Flinders Island
(1) In calendar year 2003, the maximum charge payable for electrical services provided by the Hydro-Electric Corporation on King Island or Flinders Island, as described in the electricity price determination, is the price charged in calendar year 2002 for those services on that island multiplied by the prescribed inflationary factor.(2) Despite subclause (1) , in calendar year 2003, the maximum charge payable for energy on King Island or Flinders Island may be adjusted to take account of the effect of the difference between the diesel fuel price applicable in calendar year 2002 and that applicable in calendar year 2003.
10. Increase of retail tariffs and special services
In calendar year 2003, the maximum prices for all residential and business tariff customers in respect of –are equal to the respective maximum prices payable in calendar year 2002 multiplied by the prescribed inflationary factor.(a) fixed charges; and(b) special services as specified in column 1 of Schedule 5 to the electricity price determination for customers on mainland Tasmania and on King Island and Flinders Island –
11. Limits on increase of retail tariffs and special services
Despite clause 10 , Aurora Energy Pty Ltd may not increase the amount payable by a tariff customer in respect of the same level and pattern of consumption so as to exceed an amount equal to the prescribed inflationary factor plus 2 per cent.
This order expires on 31 December 2003.
Displayed and numbered in accordance with the Rules Publication Act 1953.
Notified in the Gazette on 11 December 2002
This order is administered in the Department of Treasury and Finance.
EXPLANATORY NOTE
(This note is not part of the order)
This order sets the maximum prices that may be charged by electricity entities for the supply of electrical services for the year commencing on 1 January 2003.