Households and businesses to benefit from lower transmission costs

1/12/2017

Households and businesses to benefit from lower transmission costs

Key points

  • TransGrid’s latest revenue proposal delivers an average annual real reduction of 3.9% in transmission tariffs compared to the current regulatory period
  • TransGrid’s proposed costs will account for less than 6% of an average household electricity bill in New South Wales
  • Engagement and feedback from consumer groups, customers, stakeholders and the AER has shaped TransGrid’s latest proposal
  • TransGrid will continue to provide a safe, reliable supply of electricity to NSW and the ACT at the lowest possible cost
TransGrid, the manager and operator of the New South Wales high-voltage transmission network, has lodged a Revised Revenue Proposal (the Proposal) with the Australian Energy Regulator (AER) that would on average reduce the costs of TransGrid’s services for NSW and ACT energy consumers by 3.9% over the next five years compared to the current regulatory period.

TransGrid’s Proposal continues a record of delivering real price reductions after consumers saw a 7.1% drop in tariffs in the 2014-2018 regulatory period compared to the prior period. The costs proposed will account for less than 6% of an average household electricity bill in NSW.

TransGrid CEO, Paul Italiano, said the Proposal recognised consumer concerns about energy prices and would deliver real cost savings for energy users.

“The number one concern of businesses and households when it comes to energy is cost.”

“As a business, we have heard these concerns loud and clear.”

“Just like in our last regulatory proposal, TransGrid will continue to deliver reductions in prices for its services for energy consumers in NSW and the ACT.”

“Following extensive engagement with consumers, stakeholders and the AER, our Proposal will cut transmission tariffs on average by 3.9% over the coming regulatory period, while maintaining a reliable supply of energy to NSW and the ACT,” Mr Italiano said.

“TransGrid’s Proposal shows price reductions are possible and achievable, and we look forward to it being supported by the Australian Energy Regulator.”

“This Proposal ensures that consumers will only pay for the most cost-effective solutions in energy transmission,” he said.

A full copy of the Proposal is available on the AER website