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Powerlink commitment to delivering value confirmed by AER Final Decision

May 22, 2017

Powerlink’s contribution to Queensland electricity bills is set to reduce after the Australian Energy Regulator’s (AER) Final Decision confirmed Powerlink’s commitment to deliver better value to consumers.

Powerlink Chief Executive Merryn York said the business had sought to align with the AER’s guidelines and approach as much as possible and submit a Revenue Proposal that was reasonable and capable of acceptance by the AER.

“Powerlink made a commitment to deliver better value to consumers in its five year revenue determination process,” Ms York said.

“Compared to the current regulatory period, our maximum allowed revenue has reduced by 18%.

“The AER has estimated this reduction in regulated revenue will see Powerlink’s contribution to the average residential electricity bill reduce by $31 from 1 July 2017 and then stay within CPI increases each year thereafter.

“Our approach was to propose a reasonable level of revenue to allow us to safely and efficiently operate our network, while responding to the concerns of consumers and customers over electricity prices.

“The AER recognised this approach by largely accepting the key building blocks of our regulated revenue.

 

“Powerlink accepts the AER’s Final Decision and will not pursue a Limited Merits Review process.”

 

Comparison of AER Final Decisions

 

Key Component

2013-17 Regulatory Period
(AER Final Decision)

2018-22 Regulatory Period

(AER Final Decision)

Change

Total Revenue

$4.79b

$3.94b

-18%

Total capital expenditure

$2.83b

$832m

-70%

Total operating expenditure

$1.04b

$976.7m

-6%

Rate of return

8.61%

6.02%

 

All figures are shown in $16/17 to allow direct comparison between periods

 

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