Frequently asked questions about pricing

Why are prices increasing?

The Independent Competition and Regulatory Commission (ICRC) determined in June 2011 that ActewAGL’s electricity retail prices for 2011-12 may be increased on average by 6.37% (CPI plus 3.42%).  ActewAGL calculates individual tariffs to comply with this decision.

Who will be affected by the price increase?

The price increase applies to all ActewAGL customers who are supplied with electricity under our ACT standard customer contract as per the relevant schedule of charges.

How much extra will I have to pay?

Electricity charges

Always Home@ActewAGL plan
The average Always Home@ActewAGL plan customer who uses 7,000 kilowatt hours (kWh) per annum will pay an extra $82.72 per annum (including GST) which is an increase of 6.42% (CPI plus 3.47%) in their electricity bill.

Always Home@ActewAGL Saver plan
The average Always Home@ActewAGL Saver plan customer who uses 10,000 kWh per annum will pay an extra $116.93 per annum (including GST) which is an increase of 7.01% (CPI plus 4.04%) in their electricity bill.
 
Always Home@ActewAGL Saver Plus plan
The average Always Home@ActewAGL Saver Plus plan customer who uses 18,000 kWh per annum will pay an extra $208.81 per annum (including GST) which is an increase of 7.87%(CPI plus 4.88%) in their electricity bill. 

Always Home@ActewAGL SmartSaver plan
The average Always Home@ActewAGL SmartSaver plan customer who uses 8,500 kWh per annum and have an average load profile will pay $87.26 more per annum (including GST) which is an increase of 6.03% (CPI plus 3.09%) in their electricity bill.

Business plan
A Business plan customer who uses 30,000 kWh per annum will receive an average increase of 6.51% (CPI plus 3.55%) in their electricity bill.

Business Incentive plan  
A Business Incentive plan customer who uses 30,000 kWh per annum and has an average load profile will receive an average increase of 5.83% (CPI plus 2.90%) in their annual electricity bill.

How has ActewAGL calculated this price increase for 2011/12?

Retail electricity prices are based on the Independent Competition and Regulatory Commission’s (ICRC) Determination of 2011-12 Retail Prices for Non-contestable Electricity Customers. This limits the average increase in franchise prices in 2011-12 to 6.37% on average. The main reasons for this price increase are the increased cost of federal government renewable energy schemes and higher network charges.

The decision passed through the increase in network charges as published by the Australian Energy Regulator (AER) on 8 June 2011 which were increased in accordance with the five-year price path, covering the years 2009–10 to 2013–14. Network charges include the charges that ActewAGL Retail pays the distributor in order to supply electricity to your premises. 

What is the Always Home@ActewAGL SmartSaver plan?

All new and replacement meters installed in ACT residences since March 2007 are recording consumption at Peak, Shoulder and Residential Off-peak times. Peak times are 7.00am to 9.00am and 5.00pm to 8.00pm daily, Shoulder times are 9.00am to 5.00pm and 8.00pm to 10.00pm daily and Residential Off-peak times are all other times. These are Australian Eastern Standard Times and are not adjusted for Daylight Saving.  The Always Home@ActewAGL SmartSaver plan offers customers with these meters different energy rates for these times. If a residential consumer with a load of 7,000 kWh moves to this tariff and has an average mix of Peak, Shoulder and Residential Off-peak energy, their bill would be about 3.6% cheaper than the standard Always Home@ActewAGL plan. If they are able to shift load from Peak times to Shoulder and Residential Off-peak times, they can further reduce their energy bills.  For example, the cost of electricity to run washing machines and dishwashers at Residential Off-peak times is 47% lower than the cost of energy to run them in Peak times.

Can I have off-peak hot water on the Always Home@ActewAGL SmartSaver plan?

Yes, customers on the Always Home@ActewAGL SmartSaver plan have the option of the Off-Peak Saver Electricity plan and/or the Off-Peak 1 Electricity plan.

How can I get a new meter to enable me to use the Always Home@ActewAGL SmartSaver plan?

If a customer does not already have an interval meter installed, they can request a new meter (at the cost of $169.00 GST Inclusive) at our ActewAGL Home Connect Stores or by calling 13 14 93. Once the new meter has been installed consumers can call us on 13 14 93 to request the Always Home@ActewAGL SmartSaver plan.

Will my energy concession /health care rebate increase accordingly?

The ACT Government has determined an increase in the energy concession and health care rebates from 1 July 2011. The new annual maximum is now $346.18 (excl. GST). This equates to a daily rate of:

       Winter daily rate will be $1.64 (excl. GST)
       Summer daily rate will be 44.69 cents (excl. GST)

Life support rebates have not increased.

All rebates will appear on your electricity invoice as a separate line item under the heading of “other amounts”. 

What input does the customer have in determining ActewAGL’s electricity charges?

On 1 March 2010, the ICRC released its Issues Paper on ActewAGL’s retail prices for non-contestable electricity customers in the ACT for 2010-2012 and called for public submissions on this report. On 16 April 2010, public submissions were called for the Draft Report, which was based on the content of the Issues Paper.

Both of these documents provided an opportunity for members of the public to have their say on ActewAGL’s electricity prices for 2010-11 and 2011-12.  Taking into account the comments received, the ICRC prepared its Final Decision and Price Direction - Retail Prices for Non-contestable Electricity Customers, which was released on 11 June 2010.

Who determines these new charges?

ActewAGL’s electricity charges for customers on the Transitional Franchise Tariff (TFT) are regulated by the ICRC. ActewAGL sets prices for each of its TFT electricity services based on the ICRC’s determination for 2011-12.

Where can I view all charges and when?

ActewAGL’s transitional franchise tariffs for standard retail electricity supply in 2011-12 were published in the Canberra Times on 25 June 2011. 

Pamphlets of the schedule of charges are available from ActewAGL shopfront and offices from mid July or by calling 13 14 93.

How do the electricity tariff increases, effective 1 July 2011, apply to Greenchoice customers?

The total price Greenchoice customers pay is the sum of the retail rate for standard electricity plus the Greenchoice premium for accredited GreenPower. While the retail rate for standard electricity increased as a result of higher network costs, there has been no increase in the Greenchoice premium.

Has the feed-in tariff rate changed?

The ACT Government has announced that the revised ACT electricity feed-in tariff scheme which commenced on 12 July 2011 was closed at midnight on 13 July 2011.

The scheme was re-opened on 12 July 2011 following amendments to the Electricity Feed-in (Renewable Energy Premium) Act 2008. The amendments established a combined cap of 30MW for micro and medium scale generation capacity. That cap has now been reached.

This followed the earlier closure of the micro generator component of the same scheme on 31 May 2011.

Please note customers who successfully applied for the ACT feed-in tariff prior to 31 May 2011 will continue to receive credit for generation at the relevant premium rate for the duration of their 20 year contract:

• Customers who signed up to the feed-in tariff between 1 March 2009 and 30 June 2010 will continue to receive the 50.05 c/kWh premium rate for the duration of their 20 year contract (or 80% of 50.05c/kWh for installations with a capacity between 10 and 30kW).
• Customers who signed up to the feed-in tariff between 1 July 2010 and 31 May 2011 will continue to receive 45.7 c/kWh premium rate for the duration of their 20 year contract (or 80% of 45.7c/kWh for installations with a capacity between 10 and 30kW).

Customers who successfully applied for the revised ACT feed-in tariff between 12 July 2011 and 13 July 2011 will receive a flat rate premium payment of 30.16 c/kWh for the duration of their 20 year contract for installations up to 200kW.

To protect those who proceeded in good faith and have already committed to an installation, any householders or businesses that have entered into a contract for a solar installation and had paid a deposit before midnight 31 May 2011 can still be accepted into the previously closed micro generator category. Specifically, a customer can still access the closed scheme if that person:

• entered into a valid contract before the program termination date/time;
• can produce evidence that a monetary deposit had been paid to the contracted supplier prior to the termination date/time; and
• can provide a Statutory Declaration to this effect.

To take up this opportunity, the ACT Government has determined that applications must be lodged with ActewAGL Distribution by COB 29 July 2011. After that date no further applications will be accepted.

There are no similar residual arrangements available to potential applicants under the 12 July 2011 version of the scheme.

For more information visit the ACT Government website, call Canberra Connect on 13 22 81 or email deccewfeedintariff@act.gov.au

Why are prices increasing?

ActewAGL has increased its natural gas retail prices in the ACT by 7.7% on average due to increases in network charges and changes in the Consumer Price Index (CPI). Network charges include the charges that ActewAGL Retail pays to the distributor in order to supply natural gas to your premises.

For NSW prices, the Independent Pricing and Regulatory Tribunal (IPART) has allowed ActewAGL to increase its natural gas retail prices by 3.5, 7.4 and 2.2% on average in the Capital, Queanbeyan/Bungendore and Shoalhaven regions respectively, mainly due to higher network charges. These increases are in line with the Voluntary Transitional Pricing Arrangement (VTPA) that applies to ActewAGL's NSW natural gas customers between 1 July 2010 and 30 June 2013.

Who will be affected by the price increase?

The price increase applies to all ActewAGL customers who are supplied under our ACT or NSW standard customer supply contract for natural gas as per the relevant schedule of charges.

The price increase also applies to all ActewAGL customers supplied under a negotiated contract for natural gas, including customers on 'Bundle' or "Energy Rewards" contracts. These customers will receive a letter notifying them of the price increase.

How much extra will I have to pay?

For ACT customers:

The increase is approximately an additional $1.80 (GST inclusive) per week for an average ACT customer who uses 50 GJ per annum on the Always Home @ActewAGL Saver natural gas plan.

For NSW customers:

For customers in the Queanbeyan and Bungendore region, the increase is approximately an additional $0.93 (GST inclusive) per week for a typical residential customer who uses 23 GJ per annum on the Always Home @ActewAGL Saver natural gas plan.

For Capital Region customers, the increase is approximately an additional $1.23 (GST inclusive) per week for a typical residential customer who uses 23 GJ per annum on the Always Home @ActewAGL Saver natural gas plan.

For Nowra (Shoalhaven) customers, the increase is approximately an additional $0.35 (GST inclusive) per week for a typical residential customer who uses 15 GJ per annum on the Always Home @ActewAGL Economy natural gas plan.

Will my energy concession/health care rebate increase accordingly?

The ACT Government has determined an increase in the energy concession and health care rebates for eligible ACT customers from 1 July 2011. The new annual maximum is now $346.18 (excl. GST). This equates to a daily rate of:

• Winter daily rate will be $1.64 (excl. GST)
• Summer daily rate will be 44.69 cents (excl. GST)
• Life support rebates have not increased.

All rebates will appear on your electricity invoice as a separate line item under the heading of "other amounts".

Who determines these new charges?

In the ACT, retail natural gas pricing is not regulated, and ActewAGL reviews its charges from time-to-time to ensure it recovers the costs of supplying natural gas to customers. Variations to ActewAGL's Schedule of Charges for natural gas are however approved by the Independent Competition and Regulatory Commission (ICRC).

For NSW prices, ActewAGL and the Independent Pricing and Regulatory Tribunal (IPART) agreed upon a Voluntary Transitional Pricing Arrangement (VTPA) to apply to ActewAGL gas customers in NSW from 1 July 2010 to 30 June 2013.

Where can I view all charges and when?

ActewAGL's ACT retail natural gas tariffs effective from 1 July 2011 were published in The Canberra Times on 25 June 2011.

ActewAGL NSW gas retail tariffs effective from 1 July 2011 were published in:

• The Boorowa News on 30 June 2011
• The Goulburn Post on 1 July 2011
• Yass Tribune on 29 June 2011
• The Young Witness on 1 July 2011
• Queanbeyan Age on 1 July 2011
• Nowra South Coast Register on 29 June 2011
• Bungendore Mirror on 29 June 2011.

Pamphlets of the schedule of charges will be available from ActewAGL shopfront and offices from mid-July or by calling 13 18 86.

Why have water prices increased this year?

The Independent Competition and Regulatory Commission (ICRC) has approved an adjustment to water prices effective from 1 July 2011. This adjustment is in accordance with the ICRC’s 2008 Final Report on Water and Wastewater Prices for the period 2008–09 to 2012–13.

The ICRC based their decision on a review of the price adjustment mechanism for the 2011–12 and 2012–13 years to allow for:

• an adjustment to water usage volumes originally forecasted by the ICRC for 2011–12 and 2012–13
• incorporation of capital expenditure and operating costs for the Tantangara transfer project.

Although the ACT’s existing storage dams are full and all restrictions (other than permanent water conservation measures) have been removed, the Commission reduced their original supply volumes projections to reflect the current demand situation.

In October 2007, the ACT Government announced a range of new water supply projects which ACTEW is now working to implement. This includes the Tantangara transfer which involves transferring water from the Murrumbidgee River to the ACT via the Snowy Mountains Scheme. This project has diversified Canberra’s water supply sources by adding water from a new, reliable and very large catchment outside the ACT.

Who determines these new charges?

ACTEW’s charges are regulated and approved by the ICRC. The ICRC set prices for water and wastewater services in its five-year price direction for water and wastewater services in April 2008, including recovery of the Water Abstraction Charge (WAC) and Utilities Network Facilities Tax (UNFT), which are set and charged by the ACT Government. The five-year price direction included provision for adjustment of tariffs for 2011–12 and 2012–13 at a ‘mid-term review’.

What is daily pricing?

Water bills are calculated based on average daily usage. This is sometimes referred to as ‘daily pricing’. Water usage is divided by the number of days in the billing period. Consumers that use less than 0.548kL per day on average will pay only the first step price of $2.33/kL. Any average daily usage in excess of 0.548kL per day will be charged at the second step price of $4.66/kL.

For example, in 2011–12 a customer using 100kL per quarter will pay $2.33/kL for around half their usage each quarter (and $4.66/kL for the remainder). This ensures that water bills track more closely with water usage.

How much of my bill is due to the ACT Government’s WAC and UNFT?

For water consumed after 1 July 2008, ACT Government Water Abstraction Charge (WAC) and Utilities Network Facilities Tax (UNFT) charges are calculated in the total price and are not itemised in water bills.

The April 2008 ICRC final report on ACT water prices (page 54-56) contains a discussion of the WAC and UNFT amounts to be recovered by ACTEW’s prices. Around $41 million has been forecast in ACTEW’s costs for 2011–12 ($35 million for WAC and $6 million for UNFT).

Because WAC and UNFT are not separately identified in the prices set by the ICRC, ACTEW is unable to determine exactly how much of your water bill is due to those charges. As a guide, the water abstraction charge paid by ACTEW is 51 cents/kL for all water that it takes from dams and rivers in 2011–12. The UNFT amount payable by ACTEW is $749 per kilometre of its water and sewerage network.

Unfortunately, ActewAGL and ACTEW are not in a position to address questions concerning WAC policy, its purpose and use, and its level. If you have questions, please call the ACT Government through the ACT Treasury Economics Branch Director on 6207 0337. For information and enquiries about the UNFT, please refer to the ACT Revenue Office's website.

What is the total percentage increase on my water and sewerage account?

Residential

The increase in your annual water bill in 2011–12 will vary depending upon the pattern of your water usage over the year. For a residential customer using 250kL per annum, the combined impact of changes to prices for water and wastewater services in 2011–12 would be an increase of around 11.7% in the annual bill (around $2.72 per week). This equates to an increase of around 8.6% plus inflation (assuming a CPI increase of 2.85%, the actual rate for 2011).

The following table provides some examples assuming a flat consumption profile (equal usage in each quarter) over the year.

Combined residential water and wastewater bill impacts

Usage profile: equal usage in each quarter

Commercial

The impact on commercial customers will vary from an 8.2% increase for large water-users with no billable fixtures to a 10.9% increase for customers with many billable fixtures and low water usage. The following table provides some examples.

Combined commercial water and wastewater bill impacts

Usage profile: equal usage in each quarter

How has this increase been calculated?

The ICRC determined a five-year price path in April 2008 to allow ACTEW to recover the efficient costs of operating its water and wastewater businesses. These costs include investments in projects to secure ACT region’s water supply as noted above.

What input does the customer have in determining ACTEW Corporation charges?

Between December 2007 and February 2008, the ICRC held a public hearing for the Draft Price Direction in which the public had ample opportunity to raise concerns or provide input into the decision. The ICRC also called for comments from interested parties on its discussion and information papers between August 2006 and October 2007.

The ICRC will begin work for the next pricing period (2013-18) next year. The public will again have an opportunity to have input and have their say on how water should be priced in 2012, ahead of the ICRC’s next pricing period, beginning 1 July 2013.

Will my pension/health care rebate increase accordingly?

The pension/health care rebate scheme is an ACT Government initiative. ActewAGL administers the rebate scheme on behalf of the ACT Government and provides advice to the ACT Government when charges are varied but the ACT Government decides whether or not to increase the rebate. Rebates under the pension/health care rebate scheme will not be increased this year. There will also not be an increase in life support rebates.

Will the price of miscellaneous services increase?

Under the ICRC’s April 2008 water and wastewater price direction, miscellaneous fees and charges have increased in line with CPI (2.85%) rounded to the nearest dollar.