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 Improving network reliability   Show all

  • Hardening the network

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    Extreme weather in 2016/17 resulted in significant network outages and loss of supply to customers for extended periods of time. Customers, particularly in regional areas, are often supplied via overhead bare-wire conductor making them more likely to be affected by storm activity. Customers located in heavily vegetated areas are also more likely to be affected by strong winds and storms.

    In our 2020-25 Revised Regulatory Proposal, we are proposing targeted programs to reduce power outages and improve reliability caused by severe weather events. One way of doing this is to finalise our ‘Hardening the Network’ program - which we developed in response to customer feedback. This program has been ongoing since 2015. Once (if) completed, this program will reduce the length of outages by two hours each year for around 50,000 customers in targeted regional areas across SA.

    In its Draft Decision, the Australian Energy Regulator (AER) did not support our proposed ‘hardening’ program. Following the AER’s Draft Decision, SA Power Networks consulted further with our Customer Consultative Panel (SAPN CCP) and key stakeholders, and received strong feedback from several stakeholders that the Hardening the Network program should be re-submitted to address the ongoing reliability concerns of pockets of customers (especially business customers), who are impacted by weather events.

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Page last updated: 20 Sep 2021, 04:00 PM