AER issues final decision on SA Power Networks' 2020-25 Regulatory Proposal

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The Australian Energy Regulator (AER) today has announced its final decision in regard to SA Power Networks’ 2020-25 Regulatory Proposal.

The AER has approved revenue of $3,914 million for the 2020-25 period, 5.5 per cent lower than the allowed revenue in the 2015–20 final decision. This revenue reflects the cost of maintaining and upgrading the network of substations, Stobie poles and wires that delivers electricity reliably and safely to about 900,000 residential and business customers across South Australia.

Real revenues will fall from 2019–20 levels by 9.4 per cent in the first year of the regulatory control period with a smaller 1.79 per cent decrease over the remaining years of the regulatory control period. The decision means SA Power Networks’ charges for customers will be held below inflation for the five-years.

The actual first-year impact for residential and business customers will be announced later this month when the AER confirms SA Power Networks’ proposed tariffs for 2020/21. These tariffs will reflect the revenue decision and other factors, including the impact of regulatory incentive schemes; lower business energy sales (due to solar uptake and lower business demand including from COVID 19); and Government FiT scheme costs.

Announcing the AER decision, AER Chair Clare Savage said “We have largely supported what SA Power Networks proposed to us because of their strong consumer engagement. Consumers were clear in their support for lower prices, increased spending to accommodate more solar PV and new tariff structures,” said Ms Savage.


Ms Savage said “Rooftop solar is now mainstream for South Australian households and businesses but that has an effect on the operation of the network. We’ve funded increased capability to help the network cope with this change.

“We’ve also approved discounted daytime tariffs to encourage consumers to use power when the sun is shining. The decision will allow SA Power Networks to come back to us for more funding if they need to further strengthen the network to cope with very low levels of grid demand during the day,” said Ms Savage.

The new "solar sponge" tariff will see charges increase during mornings and evenings to encourage consumers to access the cheaper pricing in the middle of the day. This will only be available for those homes with time-of-use meters installed and where the retailers pass on the new tariff structure.

“We welcome finalisation of what has been a long and detailed process to determine our revenue for 2020-25,” said SA Power Networks General Manager Customer & Community, Jess Vonthethoff. “We particularly appreciate the extensive contribution of time and effort from our customer and stakeholder representatives in helping shape our proposal.”

For more information on this determination, please visit the AER's website here

The Australian Energy Regulator (AER) today has announced its final decision in regard to SA Power Networks’ 2020-25 Regulatory Proposal.

The AER has approved revenue of $3,914 million for the 2020-25 period, 5.5 per cent lower than the allowed revenue in the 2015–20 final decision. This revenue reflects the cost of maintaining and upgrading the network of substations, Stobie poles and wires that delivers electricity reliably and safely to about 900,000 residential and business customers across South Australia.

Real revenues will fall from 2019–20 levels by 9.4 per cent in the first year of the regulatory control period with a smaller 1.79 per cent decrease over the remaining years of the regulatory control period. The decision means SA Power Networks’ charges for customers will be held below inflation for the five-years.

The actual first-year impact for residential and business customers will be announced later this month when the AER confirms SA Power Networks’ proposed tariffs for 2020/21. These tariffs will reflect the revenue decision and other factors, including the impact of regulatory incentive schemes; lower business energy sales (due to solar uptake and lower business demand including from COVID 19); and Government FiT scheme costs.

Announcing the AER decision, AER Chair Clare Savage said “We have largely supported what SA Power Networks proposed to us because of their strong consumer engagement. Consumers were clear in their support for lower prices, increased spending to accommodate more solar PV and new tariff structures,” said Ms Savage.


Ms Savage said “Rooftop solar is now mainstream for South Australian households and businesses but that has an effect on the operation of the network. We’ve funded increased capability to help the network cope with this change.

“We’ve also approved discounted daytime tariffs to encourage consumers to use power when the sun is shining. The decision will allow SA Power Networks to come back to us for more funding if they need to further strengthen the network to cope with very low levels of grid demand during the day,” said Ms Savage.

The new "solar sponge" tariff will see charges increase during mornings and evenings to encourage consumers to access the cheaper pricing in the middle of the day. This will only be available for those homes with time-of-use meters installed and where the retailers pass on the new tariff structure.

“We welcome finalisation of what has been a long and detailed process to determine our revenue for 2020-25,” said SA Power Networks General Manager Customer & Community, Jess Vonthethoff. “We particularly appreciate the extensive contribution of time and effort from our customer and stakeholder representatives in helping shape our proposal.”

For more information on this determination, please visit the AER's website here

Category Draft Decision   Show all

  • AER announces Draft Decision on our 2020-25 Regulatory Proposal

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    15 Nov 2019

    The Australian Energy Regulator (AER) response accepted a number of our plans, including work to ensure the network can support the integration of more solar, batteries and electric vehicles to 2025.

    However, we are concerned the AER did not fully recognise the very specific challenges of managing South Australia’s ageing distribution network – the oldest in the National Electricity Market (NEM).

    If the AER draft decision stands we will spend 20% less in the next five years on replacing aging assets than we invested in 2015-2020. We don’t believe that this is sustainable for a network of the scale and age of South Australia’s and it will make it more difficult to maintain reliability and safety. It also will push increasing costs on to customers in the future.

    Had the AER accepted our proposal in full for a measured ongoing replacement of ageing assets, it would add about $3 per annum to the bill of a residential customer.

    We also are disappointed, as are some of our stakeholders, that the AER has not supported a plan to improve reliability of some of our worst-performing power lines mainly in regional locations including the Eyre Peninsula and Adelaide Hills.

    Our future plans were developed following extensive engagement with customers, stakeholders and the community who indicated they had three priorities – keeping prices down, maintaining safety and reliability and transitioning to the new energy future.

    We are in the process of reviewing the AER’s specific decisions in greater detail. We are also engaging further with our customer representatives and other stakeholders before submitting a revised proposal to the AER in December.

    You can read the full Draft Decision on the AER’s website.