Investor Presentaiton
INFRASTRUCTURE FOR THE FUTURE
REGULATED PRICE PATH
CPI minus X(1)
CPI (%)
SA Power
Networks
Actual
X-Factor
Expected
movement
in revenue (2)
CPI (%)
SA Power
Actual
X-Factor
Networks
(Forecast)
%
(Forecast)
Expected
movement
in
revenue %
CPI (%)
Expected
movement
TransGrid (3)(4)
Actual
X-Factor
in
(2)
(2)
revenue
(Forecast)
%
Year 1
1.72
Year 1(5)
Year 1
n/a
28
-26.80
n/a
-7.30
n/a
n/a
(1 Jul 15)
(2.50)
(1 Jul 20)
(1 Jul 18)
n/a
Year 2
1.69
Year 2
Year 2
1.80
-7.13
8.90
1.79
0.44
-0.97
2.79
(1 Jul 16)
(2.50)
(1 Jul 21)
(2.27)
(1 Jul 19)
(2.45)
Year 3
1.48
Year 3
Year 3
1.80
-0.94
2.40
1.79
0.44
-0.17
1.97
(1 Jul 17)
(2.50)
(1 Jul 22)
(2.27)
(1 Jul 20)
(2.45)
Year 4
1.91
Year 4
Year 4
-0.74
2.66
1.79
0.44
-1.98
0.47
(1 Jul 18)
(2.50)
(1 Jul 23)
(2.27)
(1 Jul 21)
(2.45)
Year 5
1.78
Year 5
Year 5
-0.85
2.65
1.79
0.44
-1.98
0.47
(1 Jul 19)
(2.50)
(1 Jul 24)
(2.27)
(1 Jul 22)
(2.45)
(1) Whilst referred to as CPI-X, the actual tariff increase formula used by the regulator is: (1+CPI)*(1-x)-1. Source: AER
(2) Excludes over or under recovery and S factor revenue
(3) The forecast X-Factor and forecast CPI for the periods from 1 July 2018 to 30 June 2023 are based on TransGrid's 2019-23 Transmission Revenue Determination issued by the AER on 18 May 2018. Actual X-factors are
updated using actual cost of debt.
(4) On 16 May 2018, the AER advised by letter a revocation and substitution of TransGrid's transmission determination for the 2014-18 regulatory period. The AER also advised by email on 23 April 2018 that adjustments
($10.8m) to the 2017-18 MAR are to be included in the price calculations for 2019-20.
(5) SA Power Networks is not required to apply an X factor for 2020/21 because the AER set the 2020/21 expected revenue in its Final Determination. The expected revenue for 2020/21 is around 9.4% lower than the approved
total annual revenue for 2019/20 in real terms, or 7.3 % lower in nominal terms.
Spark Infrastructure | Investor Presentation | August 2020
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