Ausgrid considers that a fully cost-reflective tariff may involve a localised dynamic peak energy charge. The efficient properties of such a tariff draw from the resulting application of peak prices on only the few days when peak events occur and to only customers using elements of the network that are constrained. The theoretically efficient tariff is discussed in more detail in section 8.1. The illustrative LRMC-based peak energy charge that would arise from the implementation of a dynamic peak charging parameter is presented in Table 7 below. Table 7 LRMC estimates for dynamic peak charging parameter – Illustrative LRMC LRMC Conversion Parameters DUOS Price Tariff $/kW Alpha () No. of peak c/kWh Low Voltage 164 1 72 227 High Voltage 53 1 72 73 Sub-transmission 8 1 72 11.6 Voltage Source: Ausgrid 2015 However, Ausgrid has not introduced localised dynamic peak pricing in the next regulatory control period because the are likely to outweigh the associated economic benefits. Further, the implementation of such a tariff would impose unacceptable bill impacts on our customers, as discussed later in section 8 and in Appendix A. The seasonal peak energy charge Ausgrid is applying seasonal peak energy charges and is reforming the residential winter peak period from 1 July 2018, as discussed in detail in section 6. The resulting definition of the peak periods is summarised in Table 8 below. Table 8 Time periods for seasonal peak charging parameter – Season Proposed Time Period Definition From 2pm to 8 pm on working weekdays during 1 November and 31 March Summer peak period (inclusive) Winter peak period From 5pm to 9pm on working weekdays during 1 June to 31 August (residential) (inclusive) From 2pm to 8pm on working weekdays during 1 June to 31 August Winter peak period (business) (inclusive) For the purpose of guiding its decisions on the peak energy charge for Ausgrid’s TOU tariffs, Ausgrid calculated the illustrative peak energy charge for each tariff class under the seasonal peak period definitions. These illustrative estimates are presented in Table 9 below. 9 LRMC estimates for seasonal peak charging parameter – Illustrative LRMC LRMC Conversion Parameters DUOS Price Tariff $/kW Alpha () No. of peak c/kWh
Ausgrid considers that a fully cost-reflective tariff may involve a localised dynamic peak energy charge. The efficient properties of such a tariff draw from the resulting application of peak prices on only the few days when peak events occur and to only customers using elements of the network that are constrained. The theoretically efficient tariff is discussed in more detail in section 8.1. The illustrative LRMC-based peak energy charge that would arise from the implementation of a dynamic peak charging parameter is presented in Table 7 below. Table 7 – LRMC estimates for dynamic peak charging parameter Tariff LRMC Conversion Parameters Illustrative LRMC DUOS Price $/kW Alpha () No. of peak c/kWh Low Voltage 164 1 72 227 High Voltage 53 1 72 73 Sub-transmission Voltage 8 1 72 11.6 Source: Ausgrid 2015 However, Ausgrid has not introduced localised dynamic peak pricing in the next regulatory control period because the are likely to outweigh the associated economic benefits. Further, the implementation of such a tariff would impose unacceptable bill impacts on our customers, as discussed later in section 8 and in Appendix A. The seasonal peak energy charge Ausgrid is applying seasonal peak energy charges and is reforming the residential winter peak period from 1 July 2018, as discussed in detail in section 6. The resulting definition of the peak periods is summarised in Table 8 below. Table 8 – Time periods for seasonal peak charging parameter Season Proposed Time Period Definition Summer peak period From 2pm to 8 pm on working weekdays during 1 November and 31 March (inclusive) Winter peak period (residential) From 5pm to 9pm on working weekdays during 1 June to 31 August (inclusive) Winter peak period (business) From 2pm to 8pm on working weekdays during 1 June to 31 August (inclusive) For the purpose of guiding its decisions on the peak energy charge for Ausgrid’s TOU tariffs, Ausgrid calculated the illustrative peak energy charge for each tariff class under the seasonal peak period definitions. These illustrative estimates are presented in Table 9 below. 9 – LRMC estimates for seasonal peak charging parameter Tariff LRMC Conversion Parameters Illustrative LRMC DUOS Price $/kW Alpha () No. of peak c/kWh
Amended%20Revised%20TSS%20-%2022%20Feb%202017%28FINAL%29%20-%20AER%20amendment%20-%20MARK%20UP.docx