Network Tariff Reform
Network tariffs are the mechanism used to charge different classes of customers for how they use the shared network. Network tariffs are designed to be 'cost reflective' where the tariffs are designed to charge consumers for the way the use electricity.
Network tariffs also play a critical part in the Queensland Government’s regulatory pricing framework, where the network tariffs are the foundation of regulated retail tariffs and are set on the Network + Retail approach. Under this approach, the prices of existing retail irrigation tariffs (T62, T65 and T66) will be escalated by 25% each year and become obsolete by 2020.
Irrigators as a separate customer class
CANEGROWERS is calling for irrigators to be recognised as a separate customer class.
Ergon and Energex’s current network tariffs only separate customers according to business size or household class. This means that the costs of supplying electricity to irrigators is not accurately reflected in the prices irrigators pay. It is economically efficient to group irrigators together, based on the nature and extent of usage, the nature of the connection to the network, reliability and minimum service standards and capacity to utilise alternate metering services.
Classifying irrigators as a separate class of customers will ensure irrigators can have access to their own dedicated irrigation network tariffs, which allows the QCA to set regulated prices for irrigators.
CANEGROWERS made a submission to Ergon's Network Tariff Strategy Review and commented on the final report from Frontier Economics.
Follow these links to read the documents.
CANEGROWERS factsheet Why irrigators should be a separate customer class
CANEGROWERS submission to Ergon's Network Tariff Strategy Review.
CANEGROWERS response to the Review's final report from Frontier Economics.