TasNetworks' pricing strategy allows for the efficient recovery of costs in a way that will comply with recent changes to the National Electricity Rules (NER). These rules require that distribution network companies structure their prices to better reflect the usage of individual customers and the demands they place on the network.
TasNetworks has developed a set of principles to help guide the development of the pricing strategy. The principles adopted are:
Tariffs should allow for recovery of efficient costs
Tariffs should be as simple as possible and developed in consultation with stakeholders
Tariffs should signal the economic costs of service provision for all customers
Tariffs should be based on a well-defined and clearly explained methodology
Tariffs should consider customer impacts where proposed tariffs would impose significant adjustment costs on users
Tariffs will be compliant with the rules and meet local pricing obligations
The pricing strategy has been developed in consultation with key community stakeholders through the Pricing Reform Working Group (PRWG). The purpose of the PRWG is to provide a forum where member organisations can contribute to the direction of TasNetworks' tariff framework, provide feedback and to explore stakeholder views in relation to pricing reform. The group acts as a link to and from member organisations and is chaired by TasNetworks. The PRWG includes electricity retailers, customer advocacy groups, business associations and energy advisors. This group represents a key component of the consultation program in relation to tariff reform. The Terms of Reference outline the Working Group’s charter of governance and operations.
An Information Brochure has been developed to help customers and other interested parties understand the way prices currently work and the changes that are being proposed.
Following on from our work with the Tariff Reform Working Group and other stakeholders, on 29 January 2016 TasNetworks submitted a Tariff Structure Statement to the Australian Energy Regulator for approval. This Statement explains the network tariffs which will be offered during the two year period from 1 July 2017 to 30 June 2019. It also sets out how we intend to reform our range of tariffs, including our plans for the subsequent five year regulatory period from 1 July 2019 to 30 June 2024. To help customers and others better understand why we’re changing our network tariffs, we’ve also produced a Tariff Structure Statement Overview.
Even though our plans for the network tariffs of the future are well advanced, we will continue consulting with our customers about network tariff reforms, to ensure that our pricing is fairer and as easy to understand to as possible.
Presentations and workshop outcomes from Pricing Reform Working Group meetings:
Find out more about our distribution fees and tariffs.
Supporting vulnerable energy customers
On 22 July 2015 we facilitated, in partnership with the Energy Networks Association, a roundtable with a focus on supporting vulnerable customers.
Read more and view the presentations.
Consultation paper - Demand based network tariffs - offering a new choice
The insights gained, along with the challenges and opportunities arising in the changing energy landscape, have helped shape the development of our network tariff strategy. The consultation paper Demand based network tariffs - offering a new choice (PDF) allows customers to respond to our proposed approach to offering demand based network tariffs as a choice for customers in the next regulatory control period.
Submissions on the Demand based network tariffs - offering a new choice consultation paper have now closed. View the submissions here.
Consultation paper - Improving the way we price our network services
The consultation paper Improving the way we price our network services (PDF) allows customers to respond to our strategy to transition existing networks tariffs to be more cost reflective in the next regulatory control period.
Submissions on the Improving the way we price our network services consultation paper have now closed. View the submissions here.