Tariff and Concession Framework Review

Aden Barker

Office of Energy

Energy Affordability

Session Overview

1.Who we are – Office of Energy

2.The Tariff & Concession Framework Review

3.TCF Review Findings

4.Some TCF Review Conclusions

Energy Affordability – TCF Review

Who we are:

“The Office of Energy leads the development and implementation of policy and programs to meet Western Australia's energy needs”.

1. The Office of Energy

What does that mean?:Policy advice on:• Consumer protection• Consumer price impacts• Energy concessions

Coordination of Programs:• Hardship Efficiency Program• Fridge Replacement Scheme

1. The Office of Energy

Considering ways of charging for electricity and providing concessions to:

 

1.improve the affordability of essential electricity use;

2.facilitate the equitable, efficient and full recovery of the cost of

supplying electricity;

3.provide clear information to consumers regarding the impact

of their electricity use; and

4.provide targeted assistance for those who most require it.

2. The Tariff & Concession Framework (TCF) Review

How did we do it?

• Public Consultation• Tariff and Concession Modelling• Household Energy Characteristics Survey

2. The Tariff & Concession Framework (TCF) Review

• Issues Paper (88 submissions)

• 9 Regional Consultation Sessions

• Project Reference Group

2. TCF Review - Consultation

Major issues Raised:

•Energy Affordability

•Inclining Block Tariffs

•Concessions

•Energy Efficiency

•Defining Essential Energy use

2. TCF Review - Consultation

DISCLAIMER

Putting it into Perspective

3. TCF Review - Findings

Putting it into Perspective

3. TCF Review - Findings

(ABS)

Putting it into Perspective

3. TCF Review - Findings

Putting it into Perspective

3. TCF Review - Findings

However … Many Households Are Using More

3. TCF Review - Findings

However … ‘Average’ Doesn’t Mean Much

3. TCF Review - Findings

However … Less Use = Different Price Signals

3. TCF Review - Findings

However … Electricity is Still Heavily Subsidised

3. TCF Review - Findings

Attribution of Synergy TAP

0

50

100

150

200

250

300

350

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

($)

Mil

lio

n

Non-Concession Concession

However … Income Plays a Big Role (ABS)

3. TCF Review - Findings

So, what do we take from all this?

•Payment difficulty is caused by a number of

factors – not just electricity prices

•Assistance should be tailored and targeted

•Consumption information for consumers is

important

4. TCF Review - Conclusions

So, what do we take from all this?

•There’s a need for improved communication by

Government in this area

•Significant scope for improved energy efficiency

•Concessions policy may be better coordinated

across State Government

4. TCF Review - Conclusions

QUESTIONS?