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Charges and revenues
Determining Electricity and Gas Charges
Electricity and gas bills contain a number of charges including, retail, wholesale, network and green costs, for example solar panels. Your energy bills, which come from your retailer, do not actually show a cost breakdown. For more information about your energy bill go to: www.aer.gov.au/consumers/my-energy-bill.
AusNet Services, an electricity and gas network distribution company, derives revenue through the network cost charged on customer bills. The amount we can charge for supply through our regulated electricity networks is determined by an independent body, the Australian Energy Regulator (AER). We do not determine how much we can earn for delivering electricity.
Approximately once every five years, AusNet Services submits a revenue proposal to the AER for our three energy networks. Each proposal outlines the planned work programs and revenue we require to improve, maintain and operate safe, reliable and efficient networks that meet the long-term needs of our customers and the wider community.
To ensure our programs and revenue proposals reflect our energy future's needs, we take many opportunities to talk and listen to our customers and other groups reliant on our energy networks. In effect, the AER decides how much we can charge our customers, and this decision is reflected in electricity bills that customers receive from their energy retailer.
Click on the links below to find out more about revenue proposals:
Tariffs and allocation
As part of the charging and revenue determination process, consideration is given to the different categories of usage - for example between different types of customers, different times of use and so on. This is where the topics of network tariffs and cost allocation become relevant.
For information about network tariffs, click here.
Electricity Cost Allocation Method
National Electricity Rules NER) requires electricity Distribution and Transmission Network Service Providers (DNSPs) to develop and submit a proposed Cost Allocation Method (CAM) to the Australian Energy Regulator (AER) for approval.
Our Cost Allocation Method (CAM) documents the principles, policies and approach for attributing direct costs to, and allocating shared costs between the categories of electricity distribution and transmission services that it provides. The method has been developed in accordance with the requirements of the NER and the AER’s Cost Allocation Guidelines for Victorian Electricity DNSPs (the Guidelines).
The CAM supports the purpose of the AER’s Guidelines (the Guidelines) by promoting the principles of effective cost allocation, which in turn supports the national electricity objective by:
- ensuring that only efficient costs are allocated to different services;
- ensuring that prices paid by end customers for these services are not inappropriately inflated or discounted; and
- promoting transparent information provided to the AER, and in the decisions made by the AER.
Click the links below to download:
Gas
Gas distribution is regulated by the Australian Energy Regulator (AER) under a national framework. Under this framework, we are required to submit a proposal outlining the services that we will offer, the costs associated with the provision of these services, and the prices to be charged to customers over a five-year period. This process is known as the Gas Access Arrangement Review (GAAR).