Brighter Energy for Today and Tomorrow
EnergyAustralia remains actively involved in advocacy with
Governments and regulators regarding energy price regulation
Electricity Retail
Price Regulation
VIC
Retail price path period No Price Regulation
Wholesale cost
approach
Retail margin allowance
NSW
QLD
SA
July 2013 June 2016 July 2013 June 2016 Jan 2011 - June 2014
75% LRMC
25% Market Cost
Currently Market Cost
5.4% of EBITDA
5.7% on total costs +
5% headroom
Next likely reprice date
1st July 2013
1st July 2013
Total EA customer base
~ 600 k
~ 1.1 million
~ 100 k
Draft determination
indicates SA will move
to Market Cost in Jan
2013
~5.2% of EBITDA
(10% of wholesale +
retail operating costs)
1st Jan & 1st July 2013
~ 100 K
8
EnergyAustralia believes that in the long run market competition should set retail prices
• The removal of price regulation in Victoria has resulted in:
•
Flexible pricing
• Innovative products
High levels of competition (one of the highest churning markets in the world)
EnergyAustralia also believes that to preserve an appropriate environment for investment
in power generation wholesale energy prices must as a minimum reflect the genuine long-
run cost of building new generation in the NEM
C
EnergyAustraliaView entire presentation