Additionally, our tariff prices are aimed at ensuring that the revenue earned from each customer reflects how their consumption choices impact our actual network costs. While actual network tariffs for each year will be determined through the AER’s annual pricing proposal process, they must comply with the structures set out in our approved TSS. Changes from our initial TSS published in November 2015 We will a flat rate tariff structure for our existing small residential and business customers instead of the current declining block tariff (DBT) structure. We will introduce more cost-reflective charging windows and associated pricing to customers on time of use (TOU) and demand tariffs with an interval (or higher capability) meter. These charging windows are similar to our existing windows, but with the morning peak window being replaced with an extension of the day-time shoulder window. We will introduce a new TOU tariff structure for residential and small business customers with interval meters. These TOU tariffs will adopt the more cost-reflective charging windows noted above, rather than the legacy charging windows that are available to our customers with basic accumulation meters with TOU capability, or Type 5 meters. We will introduce opt-in demand tariffs for residential and business customers. From 1 July 2018 all new connections, upgrades and new solar PV installations for residential and small business customers will be assigned to the TOU tariff appropriate to their metering technology in the first instance, with the option to opt-out to an alternative tariff. We will implement a specific transitional tariff for approximately 1,000 low voltage business customers currently assigned to an incorrect tariff who need to move to a demand tariff and, in doing so, will experience an increase in their bills. What has not changed following the AER’s draft decision Given the cost imposition for customers and the introduction of meter contestability from 1 December 2017, we have not altered the proposed charging windows for existing TOU customers with basic accumulation meters. Since some areas of our network peak in winter, others in summer and many in both seasons, we have not implemented seasonal TOU windows. This decision is supported by most of our customers and stakeholders, who have stated that they favour simplicity in tariff design. On review, seasonal tariffs were seen as adding increased potential for significant seasonal price fluctuations to customer bills, and a layer of complexity that should be avoided if possible. Implementing seasonal tariffs for our accumulation meters with TOU capability would also involve a significant annual cost to customers that was not clearly outweighed by the benefits.
Additionally, our tariff prices are aimed at ensuring that the revenue earned from each customer reflects how their consumption choices impact our actual network costs. While actual network tariffs for each year will be determined through the AER’s annual pricing proposal process, they must comply with the structures set out in our approved TSS. Changes from our initial TSS published in November 2015 We will a flat rate tariff structure for our existing small residential and business customers instead of the current declining block tariff (DBT) structure. We will introduce more cost-reflective charging windows and associated pricing to customers on time of use (TOU) and demand tariffs with an interval (or higher capability) meter. These charging windows are similar to our existing windows, but with the morning peak window being replaced with an extension of the day-time shoulder window. We will introduce a new TOU tariff structure for residential and small business customers with interval meters. These TOU tariffs will adopt the more cost-reflective charging windows noted above, rather than the legacy charging windows that are available to our customers with basic accumulation meters with TOU capability, or Type 5 meters. We will introduce opt-in demand tariffs for residential and business customers. From 1 July 2018 all new connections, upgrades and new solar PV installations for residential and small business customers will be assigned to the TOU tariff appropriate to their metering technology in the first instance, with the option to opt-out to an alternative tariff. We will implement a specific transitional tariff for approximately 1,000 low voltage business customers currently assigned to an incorrect tariff who need to move to a demand tariff and, in doing so, will experience an increase in their bills. What has not changed following the AER’s draft decision Given the cost imposition for customers and the introduction of meter contestability from 1 December 2017, we have not altered the proposed charging windows for existing TOU customers with basic accumulation meters. Since some areas of our network peak in winter, others in summer and many in both seasons, we have not implemented seasonal TOU windows. This decision is supported by most of our customers and stakeholders, who have stated that they favour simplicity in tariff design. On review, seasonal tariffs were seen as adding increased potential for significant seasonal price fluctuations to customer bills, and a layer of complexity that should be avoided if possible. Implementing seasonal tariffs for our accumulation meters with TOU capability would also involve a significant annual cost to customers that was not clearly outweighed by the benefits.
Revised%20TSS_20170223%20clean.docx