Victorian Energy Prices January 2018 An update report on the Victorian Tariff-Tracking Project

Transcription

1 Victorian Energy Prices January 2018

2 Disclaimer The energy offers, tariffs and bill calculations presented in this report and associated workbooks should be used as a general guide only and should not be relied upon. The workbooks are not an appropriate substitute for obtaining an offer from an energy retailer. The information presented in this report and the workbooks is not provided as financial advice. While we have taken great care to ensure accuracy of the information provided in this report and the workbooks, they are suitable for use only as a research and advocacy tool. We do not accept any legal responsibility for errors or inaccuracies. The St Vincent de Paul Society and Alviss Consulting Pty Ltd do not accept liability for any action taken based on the information provided in this report or the associated workbooks or for any loss, economic or otherwise, suffered as a result of reliance on the information presented. If you would like to obtain information about energy offers available to you as a customer, go to the Victorian Government s website or contact the energy retailers directly. Victorian Energy Prices January 2018 An update report on the Victorian Tariff-Tracking Project May Mauseth Johnston, February 2018 Alviss Consulting Pty Ltd St Vincent de Paul Society and Alviss Consulting Pty Ltd This work is copyright. Apart from any use permitted under the Copyright Act 1968 (Ctw), no parts may be adapted, reproduced, copied, stored, distributed, published or put to commercial use without prior written permission from the St Vincent de Paul Society. Contact: Gavin Dufty Manager, Social Policy Unit Victoria St Vincent de Paul Society Phone: (03) or Cover image: Shutterstock.com 1

3 The Victorian Tariff-Tracking Project To date, this project has tracked electricity and gas tariffs in Victoria from July 2008 (retail price deregulation took effect on 1 January 2009) to January 2018, and developed a spreadsheet based tool that allows consumer advocates to build on the initial analysis and continue to track changes as they occur. In 2016, market offers available to new solar customers were added to the Tariff-Tracking project. The workbook allows users to calculate annual bills based on retailers rates, feed in tariffs offered and additional discounts. Again, the user can enter consumption level as well as choosing to run the bill calculation based on 1.5 kw or 3 kw solar systems. We have developed five workbooks that allow the user to enter consumption levels and analyse household bills for gas and electricity: Workbook 1: Electricity standing offers July January 2018 Workbook 2: Gas standing offers July January 2018 Workbook 3: Electricity market offers 2010 to 2018 Workbook 4: Gas market offers 2010 to 2018 Workbook 5: Solar market offers 2016 to 2018 The four workbooks can be accessed at the St Vincent de Paul Society Victoria s website: 2

4 Table of contents Key findings 4 1. Changes to the standing offers Electricity standing offers January January Off-peak rates Gas standing offers January January Market offers Electricity market offers January Potential savings - Differences between electricity offers Gas market offers January Potential savings - Differences between gas offers Solar offers January Electricity network charges and bill-stack trends Total cost of energy by area Inner city, inner North and Eastern suburbs Inner West, outer North and North Western suburbs South Eastern suburbs and Mornington Peninsula Outer Western suburbs and Western Victoria Outer North Eastern suburbs and Eastern Victoria 80 3

5 Key findings Retailers are continuing to offer significant discounts on their market offer rates. For electricity the highest discount is 43% off the bill if the bill is paid on time. For gas, the typical discount is around 16%. Almost all of the retailers have gazetted new electricity or gas standing offers to take effect post 1 January Among the incumbent retailers, electricity prices (single rate) increased on average by 10-16% (depending on network area) and gas prices increased by 5-16%. Sumo Power is the retailer with the highest electricity standing offer increases. Click Energy had the highest gas increases. The analysis presented in section 1 shows that standing offer prices increased significantly in January 2018 but that the size of the increases varies between fuel types (electricity and gas), retailers, distribution areas and tariff components (e.g. peak vs. off-peak). Section 1 also highlights significant increases to off-peak rates (both for time based off-peak and controlled off-peak load). While the peak (single) rate has increased by 29% on average (across all network areas) since January 2015, the controlled load off-peak rate has increased by 47%. See section Households with typical electricity consumption can save up to $2,100 - $2,700 per annum (depending on their network area) if switching from the worst standing offer to the best market offer. 1 See section 2.1. The difference between the best and the worst market offers ranges from $1,950 per annum (in Citipower s area) to $2,290 (in Ausnet s area) for customers with typical consumption levels. 2 See section Amaysim s market offers produce the lowest annual bill for average consumption households in all network areas. QEnergy, on the other hand, has the most expensive market offer in all network areas. 3 See section Gas customers with typical consumption (63,000Mj) can save up to $1,000 - $1,300 per annum (depending on their gas zone) if switching from the worst standing offer to the best market offer. 4 See section Based on the worst of the retailers standing offer (single rate) and the best of the published market offers (including guaranteed discounts and/or pay on time discounts). 2 Households using 4,800kWh per annum (single rate) and all market offer bills include guaranteed discounts and/or pay on time discounts. 3 Ibid. 4 Based on the worst of the retailers standing offer and the best of the published market offers (including dual fuel offers, guaranteed discounts and/or pay on time discounts). 4

6 The price-spread for gas market offers ranges from $670 per annum (Ausnet Central 1/Tru Central gas zone) to $800 (Envestra North/Origin North gas zone) for customers with typical consumption levels. 5 See section New solar customers with a 3kW system installed will have an annual bill that is between $970 and $1,200 less (depending on network area) than non-solar customers with the same consumption level. 6 See section 2.3. The maximum price-spread for solar offers is around $555 in Ausnet, $480 in Jemena, United Energy and Powercor s areas, and $350 in Citipower. 7 See section 2.3. The average retail component of a standing offer bill is estimated to be $850 per annum, while it is $320 or less for market offer customers (including pay on time discounts). For solar customers the average retail component of bills is $70 per annum. 8 See section 3. The retail component is the largest component of standing offer bills while the retail, wholesale and network components are quite similar for market offer customers. In relation to solar bills, the network component is the largest component followed by wholesale costs. See section 3. Dual fuel households in the in the Eastern suburbs of Bulleen, Templestowe, Box Hill, Doncaster, Mitcham, Vermont, Glen Waverly and Chadstone as well as the bayside suburbs of Elwood, Elsternwick, Brighton, Sandringham, Beaumaris, Chelsea and South Eastern Suburbs of Bentleigh, Moorabbin, Springvale, Noble Park, Keysborough have received the greatest combined energy price increases in January The annual energy bill for average consumption dual fuel households in these areas will increase by approximately $465 per annum. Households in Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga, however, will continue to have the highest average annual combined energy bills. Based on typical consumption levels, the average combined annual energy bill in these areas is now $4, See section 4. 5 Households using 63,000Mj per annum. All published market offers (including dual fuel offers, Guaranteed discounts and/or pay on time discounts). 6 Bill calculations based on average electricity (4,800kWh) market offers including guaranteed discounts and pay on time discounts. 7 Based on the worst and the best of the published market offers for single rate customers using 4,800 kwh per annum and a 3kW solar system installed. Bills include additional discounts and/or pay on time discounts and FIT, 3kW solar system. 9 Bill calculations based on average electricity (4,800kWh) and gas (63,000Mj) standing offers. Dual fuel gas offers are not included. These areas are in the United Energy electricity network and Multinet s Origin Metro and AGL South gas zones. 10 Ibid and based on Ausnet electricity network and Envestra s Origin North gas zone. 5

7 1. Changes to the standing offers Most of the Victorian retailers gazetted new standing offers that took effect in early January 2018 and this section compares these new standing offer rates to those that took effect in January It should be noted, however, that many AGL, Origin and Energy Australia customers on standing offers or non-discounted market offers would have received discounts that offset the price increases taking effect on 1 January Concession cards holders will receive the greatest discounts while other customers on standing offers or non-discounted market offers may receive a discount, depending on their retailer and/or circumstances. 11 These discounts (or rebates) are funded by the three retailers and were introduced after the Victorian Government stepped in to make power bills fairer Electricity standing offers January 2017 January 2018 As in the previous Tariff-Tracking reports, the bill calculations in this report have assumed an average consumption of 4,800kWh per annum for households on the single rate. 13 These are generally households connected to mains gas and therefore have a lower consumption than all- electric households. For all-electric households, which are predominantly in rural areas, the bill calculations have assumed an average consumption of 7,000kWh per annum. The rates used in the calculations are those for the controlled load offers and a split of 70% peak and 30% off-peak has been assumed. There are five network businesses in Victoria: Powercor and Ausnet distributing electricity to rural and regional Victoria and Citipower, Jemena and United Energy. The three incumbent retailers, AGL, Origin and Energy Australia, increased their standing offer prices by 10 to 16% on average (across all network areas). Charts 1-3 below show the incumbent retailers electricity standing offer as of January 2017 and January They show that the price increases vary significantly between retailers as well as network areas. On average, AGL increased its standing offer prices by 10%. AGL is the incumbent retailer in the Jemena and United Energy networks and standing offer customers with an annual consumption of 4,800 kwh (single rate) will experience an annual increase of $155 (or 8%) in Jemena and $205 (or 11.5%) in United Energy s area. Chart 1 Changes to AGL s standing offers (as annual bills, inc GST) from January 2017 to January Calculations based on single rate tariff and annual consumption of 4,800kWh 11 Origin, for example, states that all customers on standing offers and and non-discounted customers will receive an automatic discount from 1 January 2018 that will also offset the electricity price increase, and they will effectively enjoy a five per cent saving compared to today s prices (Origin Energy, Media Release 26 November 2017). AGL, on the other hand, states that our most loyal non-concession standing offer customers we announced a 10 per cent electricity discount. These are households who have been with AGL two years or more on our standing offer. (AGL, Media Release, 4 December 2017). 12 Victorian Government, Media Release, Making Things Fair Slashing Power Bills For Victorians, 26 November 2017 at 13 Consumption levels do vary between network areas, but we believe 4,800kWh and 7,000kWh per annum are appropriate benchmarks to analyse tariff changes and bill impacts for Victorian households. 6

8 Jan'17 Jan'18 2,400 $ per annum 2,200 2,000 1,800 1,600 1,698 1,886 1,853 2,048 1,977 2,161 1,919 2,072 1,765 1,968 1,400 1,200 CP PC AUS JEN UE Network areas On average, Origin increased its standing offer prices by 14%. Origin is the incumbent retailer in the Citipower and Powercor networks and standing offer customers with an annual consumption of 4,800 kwh (single rate) will experience an annual increase of $240 (or 14.4%) in Citipower and $270 (also 14.4%) in Powercor s area. Chart 2 Changes to Origin s standing offers (as annual bills, inc GST) from January 2017 to January Calculations based on single rate tariff and annual consumption of 4,800kWh Jan'17 Jan'18 $ per annum 2,400 2,200 2,000 1,800 1,600 1,655 1,894 1,889 2,161 1,978 2,263 2,043 2,015 1,786 1,762 1,400 1,200 CP PC AUS JEN UE Network areas On average, Energy Australia increased its standing offer prices by 16%. Energy Australia is the incumbent retailer in the Ausnet network and standing offer customers with an annual consumption of 4,800 kwh (single rate) will experience an annual increase of $270 (or 13.1%) in Ausnet s area. Chart 3 Changes to Energy Australia s standing offers (as annual bills, inc GST) from January 2017 to January Calculations based on single rate tariff and annual consumption of 4,800kWh 7

9 Jan'17 Jan'18 $ per annum 2,400 2,200 2,000 1,800 1,600 1,713 2,005 1,929 2,234 2,058 2,327 1,873 2,175 1,778 2,109 1,400 1,200 CP PC AUS JEN UE Network areas As highlighted in the previous update report on the Victorian Tariff-Tracker project, some retailers place customers on their standing offer rates when the market offer s benefit period expires and it is therefore important that market offer customers are aware of retailers with very high standing offer rates. 14 The difference between standing offer prices are even greater when comparing all 24 retailers as of January The difference between the worst and the best standing offer is highest in the Ausnet network where the difference is approximately $2,150 per annum for a medium consumption household (compared to $850 in January 2017). In Jemena the difference is $1,880, in Powercor it is $1,800, in Citipower s network areas the difference is around $1,620, and in United Energy s network area the maximum difference is $1,520. Sumo Power is the retailer that produces the highest standing offer bills in all network areas. The three incumbent retailers standing offers can be placed in the middle in most network areas. Charts 4 8 below show retailers current annual standing offer bills for each of the five network areas St Vincent de Paul Society and Alviss Consulting, The NEM -A hazy retail maze, December Tango Energy was previously known as Pacific Hydro 8

10 Chart 4 Standing offers in the Citipower network (as annual bills, inc GST), January Calculations based on single rate tariff and annual consumption of 4,800kWh SUMO POWER 3,258 1ST ENERGY PEOPLE ENERGY POWERSHOP LUMO ENERGY GLOBIRD ENERGY SIMPLY ENERGY ONLINE POWER & GAS BLUE NRG ENERGYAUSTRALIA ORIGIN ENERGY POWERDIRECT AGL RED ENERGY AMAYSIM CLICK ENERGY DIAMOND ENERGY ALINTA ENERGY COVAU Q ENERGY MOMENTUM ENERGY DODO POWER & GAS COMMANDER TANGO ENERGY 2,379 2,348 2,290 2,225 2,098 2,077 2,028 2,026 2,005 1,894 1,886 1,886 1,839 1,825 1,825 1,822 1,819 1,813 1,782 1,780 1,775 1,768 1, ,000 1,500 2,000 2,500 3,000 3,500 9

11 Chart 5 Standing offers in the Powercor network (as annual bills, inc GST), January Calculations based on single rate tariff and annual consumption of 4,800kWh SUMO POWER 3,599 1ST ENERGY PEOPLE ENERGY POWERSHOP ONLINE POWER & GAS GLOBIRD ENERGY LUMO ENERGY ENERGYAUSTRALIA SIMPLY ENERGY ORIGIN ENERGY BLUE NRG DODO POWER & GAS COMMANDER POWERDIRECT AGL ALINTA ENERGY DIAMOND ENERGY AMAYSIM CLICK ENERGY RED ENERGY MOMENTUM ENERGY COVAU Q ENERGY TANGO ENERGY 2,881 2,767 2,509 2,451 2,363 2,323 2,234 2,225 2,161 2,132 2,069 2,060 2,048 2,048 2,046 2,016 2,010 2,010 2,004 1,942 1,906 1,858 1, ,000 1,500 2,000 2,500 3,000 3,500 4,000 10

12 Chart 6 Standing offers in the Ausnet network (as annual bills, inc GST), January Calculations based on single rate tariff and annual consumption of 4,800kWh SUMO POWER 4,094 1ST ENERGY PEOPLE ENERGY ONLINE POWER & GAS POWERSHOP LUMO ENERGY GLOBIRD ENERGY SIMPLY ENERGY ENERGYAUSTRALIA BLUE NRG DODO POWER & GAS COMMANDER ALINTA ENERGY ORIGIN ENERGY DIAMOND ENERGY AMAYSIM CLICK ENERGY COVAU RED ENERGY POWERDIRECT AGL MOMENTUM ENERGY Q ENERGY TANGO ENERGY 3,184 2,994 2,712 2,658 2,509 2,499 2,369 2,327 2,323 2,273 2,273 2,266 2,263 2,242 2,183 2,183 2,181 2,163 2,161 2,161 2,104 2,001 1, ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 11

13 Chart 7 Standing offers in the Jemena network (as annual bills, inc GST), January Calculations based on single rate tariff and annual consumption of 4,800kWh SUMO POWER 3,600 1ST ENERGY PEOPLE ENERGY ONLINE POWER & GAS POWERSHOP LUMO ENERGY GLOBIRD ENERGY SIMPLY ENERGY ENERGYAUSTRALIA BLUE NRG ALINTA ENERGY POWERDIRECT AGL ORIGIN ENERGY DODO POWER & GAS COMMANDER AMAYSIM CLICK ENERGY RED ENERGY DIAMOND ENERGY COVAU MOMENTUM ENERGY TANGO ENERGY Q ENERGY 2,868 2,673 2,446 2,431 2,369 2,336 2,221 2,175 2,148 2,094 2,072 2,072 2,043 2,039 2,028 1,982 1,982 1,967 1,957 1,952 1,853 1,718 1, ,000 1,500 2,000 2,500 3,000 3,500 4,000 12

14 Chart 8 Standing offers in the United Energy network (as annual bills, inc GST), January Calculations based on single rate tariff and annual consumption of 4,800kWh SUMO POWER 3,359 1ST ENERGY PEOPLE ENERGY POWERSHOP LUMO ENERGY SIMPLY ENERGY ONLINE POWER & GAS GLOBIRD ENERGY ENERGYAUSTRALIA COVAU BLUE NRG ORIGIN ENERGY POWERDIRECT AGL ALINTA ENERGY DODO POWER & GAS COMMANDER RED ENERGY MOMENTUM ENERGY AMAYSIM CLICK ENERGY DIAMOND ENERGY Q ENERGY TANGO ENERGY 2,552 2,504 2,366 2,312 2,178 2,167 2,124 2,109 2,077 2,035 2,015 1,968 1,968 1,964 1,930 1,920 1,894 1,877 1,876 1,876 1,841 1,840 1, ,000 1,500 2,000 2,500 3,000 3,500 4,000 13

15 Charts 9 13 below show the average increases as well as the individual retailers increases in each network area from January 2017 to January Sumo is the retailer with the greatest increases in all network areas while Online Power and Gas is the only retailer that has not increased its rates since January In the Citipower network, the 19 retailers average increase is 16.2%. Retailers with increases that are significantly higher than average are: Sumo, People Energy and Lumo Online (see chart 9). Chart 9 Percentage increases to standing offers taking effect in January 2018 in the Citipower network - Calculations based annual bills for customers on a single rate tariff and annual consumption of 4,800kWh AGL Alinta Energy Click Energy Commander CovaU Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy CP Online Power & Gas Origin Energy People Energy Avg Powerdirect Powershop Red Energy Simply Energy Sumo Power In the Powercor network, the average increase is 14%. Retailers with increases that are higher than average are: Sumo, People Energy, Globird and Lumo (see chart 10). Chart 10 Percentage increases to standing offers taking effect in January 2018 in the Powercor network - Calculations based annual bills for customers on a single rate tariff and annual consumption of 4,800kWh AGL Alinta Energy Click Energy Commander CovaU Diamond Energy Dodo Power & Gas EnergyAustralia PC GloBird Energy Lumo Energy Momentum Energy Online Power & Gas Origin Energy People Energy Avg Powerdirect Powershop Red Energy Simply Energy Sumo Power 14

16 In the Ausnet network, the average increase is also 14%. Retailers with increases that are significantly higher than average are: Sumo, People Energy, Dodo and Commander (see chart 11). Chart 11 Percentage increases to standing offers taking effect in January 2018 in the Ausnet network - Calculations based annual bills for customers on a single rate tariff and annual consumption of 4,800kWh AGL Alinta Energy Click Energy Commander CovaU Diamond Energy Dodo Power & Gas EnergyAustralia Aus GloBird Energy Lumo Energy Momentum Energy Online Power & Gas Origin Energy People Energy Avg Powerdirect Powershop Red Energy Simply Energy Sumo Power In the Jemena network, the average increase is 14.4%. Retailers with increases that are higher than average are: Sumo, People Energy and Lumo (see chart 12). Chart 12 Percentage increases to standing offers taking effect in January 2018 in the Jemena network - Calculations based annual bills for customers on a single rate tariff and annual consumption of 4,800kWh AGL Alinta Energy Click Energy Commander CovaU Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Jen Online Power & Gas Origin Energy People Energy Avg Powerdirect Powershop Red Energy Simply Energy Sumo Power 15

17 In the United Energy network, the average increase is 15.1%. Retailers with increases that are higher than average are: Sumo, People Energy, Lumo, Momentum, Energy Australia and Simply (see chart 13). Chart 13 Percentage increases to standing offers taking effect in January 2018 in the United Energy network - Calculations based annual bills for customers on a single rate tariff and annual consumption of 4,800kWh AGL Alinta Energy Click Energy Commander CovaU Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy UE Online Power & Gas Origin Energy People Energy Avg Powerdirect Powershop Red Energy Simply Energy Sumo Power In our January 2017 report we noted that while standing offer prices increased significantly, the size of the increases varied between fuel types (electricity and gas), retailers, distribution areas and tariff components (e.g. peak vs. off-peak). We therefore recommended that retailers place more emphasis on adequately explaining why their prices have increased in the future. 17 Disappointingly, the explanations for this year s price increases did not improve. Looking at AGL and Energy Australia s explanations, for example, indicates that a template explanation is being used: 18 Taking into account increases in the wholesale market price of electricity, and decreases in network cost, AGL will increase its retail electricity prices. The weighted average tariff variation for affected residential electricity customers is an increase of 9.4%. (AGL) Taking into account increases in the wholesale market price of electricity, EnergyAustralia Pty Ltd has decided to increase its retail electricity prices. The weighted average tariff variation for affected residential electricity customers is an increase of 13.7%. (Energy Australia) Momentum s explanation was exactly the same as that stated last year 19, despite this year s increase being 16% compared to last year s 8%. 17 St Vincent de Paul Society, Victorian Energy Prices January 2017 (January 2017) 18 Note that retailers are required to report on weighted average increases/decreases to reflect customer numbers in various network areas. As we do not know these customer numbers, our analysis is based on simple averages (not weighted). All retailer quotes below are from Victoria Government Gazette, S424, 8 December Victoria Government Gazette, S371, 1 December 2016,

18 The weighted average tariff increases for affected domestic electricity customers is a 16% increase The main reason for the increase are changes in the distribution, transmission and wholesale pass through costs associated with retailing electricity to homes and businesses. (Momentum) Origin Energy was the only retailer that mentioned green schemes as one of the reasons their prices have increased: The average electricity tariff increase is 14.4% for residential and small business customers, which reflects higher wholesale energy prices (including regulatory green schemes) and incorporates lower network and metering charges. (Origin) In the case of Alinta, they state that the weighted average tariff variation is a decrease of 2.8%. These variations follow a review of Alinta Energy s costs and we re pleased to advise that we ll be absorbing increasing wholesale energy costs. The weighted average tariff variation for residential electricity cusomers (sic) will see, is a decrease of 2.8% across Victoria. (Alinta) This is in contrast to our analysis above, which shows that Alinta s standing offer prices increased for single rate customers across all network areas between January 2017 and January While Alinta is technically correct in their statement, it is also somewhat misleading as it does not state when the last price change was. Alinta, amongst others, increased their prices in January 2017 as well as July 2017 while many others (including AGL, Origin and Energy Australia) did not increase theirs in July. While Alinta s overall increases from January 2017 to January 2018 are lower than those of AGL, Origin and Energy Australia, the difference is not as great as the public may believe based on media reports in January To the Financial Review, for example, Alinta s Chief Executive stated: [T]he acquisition of the circa 1000 MW Loy Yang B plant in the Latrobe Valley, which was agreed in November, was directly responsible for Alinta being able to cut standing electricity tariffs for Victorian households by 2.8 per cent on average, as of last week, before discounts, in contrast to larger rivals' increases of up to 14.9 per cent. 20 Furthermore, Alinta makes similar a statement on their website: Our electricity prices have gone down. 20 Angela Macdonald-Smith, Financial Review, Alinta Energy to challenge AGL, Origin after Loy Yang B purchase, 15 January Available at 17

19 From January this year, a number of energy retailers have increased their electricity standing tariffs, some by more than 14%, however we ve reduced our average customer tariffs by 2.8%. Whilst other retailers are passing on increases in wholesale costs to their customers we re not. We re taking action to make electricity cheaper for Victorian households. That s why our 2.8% reduction together with our Fair Deal electricity plan, offering a 43% discount off electricity usage charges when paid on time and in full will deliver more affordable electricity to Victorians. We promise that we ll do all we can to continue to drive electricity prices down. 21 Chart 14 below shows that four (Alinta, People Energy, Powershop and Sumo) out of 19 retailers changed their prices in both July 2017 and January 2018 while the remaining 15 changed theirs in either July 2017 or January Chart 14 Standing offers rates in the Citipower network as of January 2017, July 2017 and January 2018 as annual bills. Calculations based annual bills for customers on a single rate tariff and annual consumption of 4,800kWh Annual bill ($) 3,500 3,000 2,500 2,000 1,500 1, AGL Alinta Energy Click Energy Commander CovaU Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Jan'17 Jul'17 Jan'18 Lumo Energy Momentum Energy Online Power & Gas Origin Energy People Energy Powerdirect Powershop Red Energy Simply Energy Sumo Power As retailers can, and do, actively use these numbers to market themselves, we believe more transparency is needed. While we recognise that retailers may provide more details in their private communications with their customers, it is important that public communications are both reliable and informative. Simple omissions such as since when the last price increase occurred, mean that customers can be misled to believe that a retailer has a significantly better offer compared to others. We therefore recommend a review of the information retailers are required to publicly provide when issuing new standing offers. The review should consider:

20 What type of information (as well as format) would be most useful to customers as well as consumers more broadly; and How these public statements may prevent ambiguous claims and marketing of retail products due to increased transparency Off-peak rates All-electric households on a two-rate tariff (peak and off-peak load) may have experienced significant increases to their off-peak tariff. Charts below show average increases to the peak rate (as an annual cost) to increases to the off-peak tariff for households on a time based two-rate tariff from January 2015 to January The increases vary somewhat between network areas, but the charts show that: The annual peak-rate bill has typically increased by approximately $520 since January 2015 (chart 15) and that the greatest peak rate increase has occurred in Citipower s network area ($580). The annual off-peak-rate bill has typically increased by approximately $220 since January 2015 (chart 16) and that the greatest off-peak rate increase has occurred in Ausnet s network area ($240). In terms of percentage increases (chart 17), the off-peak rate has increased more than the peak rate and especially so in Powercor s network area where the off-peak rate has increased by 49% compared to the peak rate on 32%. Chart 15 Average increases to the two-rate tariff s peak rate for standing offers from January 2015 to January 2018 Based on an annual consumption of 7,000 kwh and 60% allocated to the peak rate 2500 Annual peak rate bill CP PC AUS JEN UE Jan'15 Jan'16 Jan'17 Jan'18 22 We have assumed an annual consumption of 7,000 kwh for both tariff types and allocated 40% to the time based two-rate off-peak tariff (peak time being weekdays from 7am to 11pm). Averages based on all retailers standing offers in each network areas. 19

21 Chart 16 Average increases to the two-rate tariff s off-peak rate for standing offers from January 2015 to January 2018 Based on an annual consumption of 7,000 kwh and 40% allocated to the off-peak rate Jan'15 Jan'16 Jan'17 Jan'18 Annual off-peak rate bill CP PC AUS JEN UE Chart 17 Average percentage increases to the two-rate tariff s peak and off-peak rate for standing offers from January 2015 to January Based on an annual consumption of 7,000 kwh and a 60/40 peak/off-peak split % increase CP PC AUS JEN UE Peak rate increase Off-peak rate increase Charts below show average increases to the peak rate (as an annual cost) to increases to the off-peak tariff for households on a controlled off-peak load from January 2015 to January The increases vary somewhat between network areas but the charts show that: 23 We have assumed an annual consumption of 7,000 kwh and allocated 30% of total consumption to the controlled load off-peak rate. Averages based on all retailers standing offers in each network areas. 20

22 The annual peak-rate bill has typically increased by approximately $390 since January 2015 (chart 18) and that the greatest peak rate increase has occurred in United Energy s network area ($420). The annual off-peak-rate bill has typically increased by approximately $160 since January 2015 (chart 19) and that the greatest off-peak rate increase has occurred in Ausnet s network area ($170). In terms of percentage increases (chart 20), the off-peak rate has increased significantly more than the peak rate during this period. While the peak rate has increased by 29% on average (across all network areas), the off-peak rate has increased by 47%. Chart 18 Average increases to the controlled load tariff s complimentary peak rate for standing offers from January 2015 to January 2018 Based on an annual consumption of 7,000 kwh and 70% allocated to the peak rate Annual peak bill CP PC AUS JEN UE Jan'15 Jan'16 Jan'17 Jan'18 21

23 Chart 19 Average increases to the controlled load tariff s off-peak rate for standing offers from January 2015 to January 2018 Based on an annual consumption of 7,000 kwh and 30% allocated to the off-peak rate 600 Jan'15 Jan'16 Jan'17 Jan'18 Annual off-peak rate bill CP PC AUS JEN UE Chart 20 Average percentage increases to the controlled load tariff s peak and off-peak rate for standing offers from January 2015 to January Based on an annual consumption of 7,000 kwh and a 70/30 peak/off-peak split % increase CP PC AUS JEN UE Peak rate increase Off-peak rate increase 22

24 1.2 Gas standing offers January 2017 January 2018 There are three gas distributors and eight main gas zones. The distributors are Multinet, Envestra/Australian Gas Network and Ausnet. The gas zones are: Multinet 1/Origin Metro, Multinet 2/AGL South, Envestra North/Origin North, Envestra Central 2/TRU East, Envestra Central 1/Origin South East, Ausnet West/TRU West, Ausnet Central 2/AGL North and Ausnet Central 1/TRU Central. The names of the gas zones derive from when AGL, Origin and TRU (now Energy Australia) were energy retailers with designated areas. These three retailers are not distribution businesses and they are not involved in setting the distribution charges in these areas. The companies names are merely used as a descriptor for the various gas zones that Multinet, Envestra/Australian Gas Network and Ausnet distribute gas to. There are also some smaller rural zones (such as Mildura) that are not included in the Tariff-Tracking tool. Chart 21 shows that households experience price increases of between 5-16% in January AGL s prices increased the most while Origin s price increases were lowest. Chart 21 Increases (%) to incumbent retailers standing offers from January 2017 to January Calculations based an annual consumption of 63,000Mj Percentage (%) increases Origin Metro AGL South Origin North Tru East Origin SE Tru West AGL North Tru Average Central AGL Origin EA Charts below show the incumbent retailers gas standing offer as of January 2017 and January

25 Chart 22 Changes to AGL s standing offers (as annual bills, inc GST) from January 2017 to January Calculations based an annual consumption of 63,000Mj Jan'17 Jan'18 $ per annum 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 1,820 1,824 1,580 1,581 1,603 1,859 Multi 1 Multi 2 Envestra North 1,520 1,764 Envestra Central 2 1,569 Gas zones 1,819 Envestra Central 1 1,510 1,733 Ausnet West 1,866 1,880 1,627 1,635 Ausnet Central 2 Ausnet Central 1 Chart 23 Changes to Origin s standing offers (as annual bills, inc GST) from January 2017 to January Calculations based an annual consumption of 63,000Mj Jan'17 Jan'18 $ per anum 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 1,697 1,697 1,759 1,759 1,759 1,676 1,670 1,670 1,576 1,576 Multi 1 Multi 2 Envestra North Envestra Central 2 Gas zones Envestra Central 1 1,584 1,492 Ausnet West 1,659 1,659 1,578 1,578 Ausnet Central 2 Ausnet Central 1 24

26 Chart 24 Changes to Energy Australia s standing offers (as annual bills, inc GST) from January 2017 to January Calculations based an annual consumption of 63,000Mj Jan'17 Jan'18 $ per annum 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 1,850 1,850 1,877 1,877 1,877 1,594 1,601 1,669 1,640 Multi 1 Multi 2 Envestra North Envestra Central 2 1,686 Envestra Central 1 1,582 1,789 Ausnet West 1,916 1,916 1,700 1,723 Ausnet Central 2 Ausnet Central 1 Gas zones All of the 2 nd tier retailers have also increased their gas standing offers but the size of the increases varies significantly. Chart 25 compares annual bills as of January 2017 to January 2018 for all retailers in the Multinet 1/Origin metro gas zone. Chart 25 Changes to standing offers (as annual bills, inc GST) from January 2017 to January 2018 in the Multinet 1/Origin Metro gas zone - Calculations based an annual consumption of 63,000Mj Jan'17 Jan'18 2,400 2,200 $ per annum 2,000 1,800 1,600 1,400 1,200 1,000 AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy On average, across all retailers, gas standing offer prices increased by 16.2% in the Multinet 1/Origin Metro gas zone. Click s increase of almost 40% is thus significantly higher than the average. 25

27 Chart 26 Percentage increases to standing offers from January 2017 to January 2018 in the Multinet 1/Origin Metro gas zone - Calculations based an annual consumption of 63,000Mj AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy Increase Average 26

28 2. Market offers As most of the retailers gazetted new standing offers to take effect post 1 January 2018, many retailers have also amended their market offers. The size of the discounts offered continues to be very high but most of them are conditional upon bills being paid on time. 2.1 Electricity market offers January The price-spread, or the difference between the best market offer and the worst standing offer (as well as the differences between market offers), will change somewhat throughout the year but as of January 2018: Typical consumption households (4,800kWh) can save $2,100 - $2,700 per annum (depending on their network area) if switching from the worst standing offer to the best market offer. 25 The greatest potential annual saving is in Ausnet s network area (approximately $1,000). 26 The difference between the best and the worst market offers ranges from just under $1,950 per annum (in Citipower s area) to $2,290 (in Ausnet s area) for customers with typical consumption levels. 27 Table 1 below shows additional discounts applicable to the electricity retailers published market offer rates. Some of the retailers have multiple market offers and may offer higher (or lower) discounts than those listed here. However, if the discount is higher the length of the contract term is typically longer. In other cases, the discount might be higher, but the customer must agree to pay by direct debit The market offers were collected from the retailers websites in mid-january 2018 and it should be noted that retailers may change their rates at any time. 25 Based on the worst of the retailers standing offer (single rate) and the best of the published market offers (including additional discounts and/or pay on time discounts). 26 Ibid. 27 Households using 4,800kWh per annum (single rate) and all market offer bills include additional discounts and/or pay on time discounts. 28 Dodo, for example, has a direct debit discount where customers receive a 30% discount off the market offer electricity rates. This discount is not included in the bill calculations presented in this report. 27

29 Table 1 Electricity market offer features January Retailer Name Effective from 1st Energy Market Offer 1/1/18 no AGL Savers 10/1/18 no Alinta Energy Fair Deal 12/1/18 no Click Energy Platinum 1/1/18 no Commander Market offer 1/10/17 no Guaranteed discount Contract Pay on time discount term/benefit period 40% off usage 24 months no 25% off usage 12 months no 43% off usage 24 months no 17% off bill no no 20% off usage no No CovaU Smart Saver 1/1/18 no 30% off usage 12 months yes Diamond Energy Pay on time discount 1/1/18 no 7% off bill 24 months yes Dodo Power & Gas^ Dodo Electricity 1/10/17 no no no no EnergyAustralia Flexi Saver 2/1/18 no 28% off usage 12 months no 34% off bill GloBird Energy Glosave 20/11/17 no no no Lumo Energy Advantage 19/12/17 no 27% off bill no no Momentum Energy SmilePower 1/1/18 no no 12 months no Online Power & Gas Fixed Saver 6/5/17 no Origin Energy Saver 1/1/18 no 35% off usage 24 months yes 26% off usage 12 months no Tango Energy Home Select 5/2/18 no no 12 months no People Energy^ On time saver 1/7/17 no 20% off usage no no Powerdirect Market Offer 1/1/18 no 33% off usage 24 months no 16% off bill Powershop* Online Saver 14/12/17 18% off bill no no Q Energy Market Rate 1/1/18 no no 24 months no Red Energy Living Energy Saver NA no 10% off bill no no Simply Energy Plus 15/1/18 no 35% off usage 24 months no Sumo Power Pay on time 1/8/17 no 27% off usage 24 months no Amaysim Electricity 3 1/1/18 no 37% off usage no no Blue NRG Blue Regular 29/3/17 no no 36 months no ^ Additional discounts for direct debit, e-billing or dual fuel customers may apply *Powershop s conditional discount is not based on pay on time but it does require customers to actively purchase special deals. Early termination fee 29 Most retailers have more than one market offer product. The offers used for this analysis are those we deem on-going, key products with as few conditions (i.e. direct debit, e-billing and exit fees) as possible. These market offers are features have been published on the retailers websites in mid- January Note Tango Energy s offer was published on 5 February

30 2.1.1 Potential savings - Differences between electricity offers Typical consumption households (4,800kWh per annum) on the worst standing offers can save $2,100 - $2,700 per annum if switching to the best published market offer (depending on their network area). 30 The difference between the worst and the best market offers is also becoming greater. Customers on the best market offer will pay approximately $1,950 - $2,290 less per annum compared to customers on the worst market offer. It should be stressed that the majority of these discounts are conditional on bills being paid on time and households with cash-flow issues thus may find themselves unable to achieve the annual bills estimated for some of the best offers included in the charts below. Furthermore, the big price-spread reflects the significant difference between the worst and the best retail offers in each network area. If we exclude these outliers (the worst and the best offers), the difference between the best and the worst market offer ranges from $1,090 per annum (in Ausnet s area) to $670 (in Citipower s area). 31 Chart 27 below shows the retail market offer price-spread within each of the five network areas. Chart 27 Maximum price-spread for market offers in each network area January 2018 (incl GST), including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate) 4,000 3,500 3,000 $ per annum 2,500 2,000 1,500 1, CP PC SP Jen UE Charts below show annual retail bills for typical consumption (4,800kWh per annum, single rate) for each of the five network areas. The blue columns to the left represent the standing offer bill, the red columns are the market offers including guaranteed discounts (but not pay on time discounts) while the green columns are market offer bills including pay on time discounts Based on market offer bills that include guaranteed discounts and pay on time discounts. 31 Households using 4,800kWh per annum (single rate) and all market offer bills include guaranteed discounts and/or pay on time discounts. 32 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in table 1. Note that Tango Energy was previously known as Pacific Hydro. 29

31 Citipower In Citipower s area, average consumption households on the worst standing offer can save approximately $2,110 per annum if switching to the best published market offer. Amaysim is the retailer that currently offers the best market offer rates in this area. 33 Chart 28 Citipower s network area: Estimated annual bills (incl GST) for electricity standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate) 3,500 3,000 2,500 2,000 1,500 Standing Market (ex POT) Market (inc POT) 1,000 1st Energy AGL Alinta Energy Click Energy Commander CovaU Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Online Power & Gas Origin Energy Tango Energy People Energy Powerdirect Powershop Q Energy Red Energy Simply Energy Sumo Power Amaysim Blue NRG Retail offers in Citipower's area The difference between the best and the worst market offer is also significant. Amaysim s offer is approximately $1,950 less than QEnergy s market offer post discounts (and pay on time discounts) for households with this consumption level. Figure 1 below shows estimated annual bills for market offers post discounts in Citipower s network area as well their current ranking compared to July The pay on time discount applied to Powershop s offer will only be obtained if customers actively shop for discounts. 34 Bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates published on the retailers websites on mid-january 2018 (except for Tango Energy which was released on 5 February) and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 30

32 Figure 1 Citipower s network area: Lowest to highest annual bills 1. Amaysim $1,150 (-) 2.Tango Energy $1,194 (1) 3. Alinta $1,224 (4) 4. Red Energy $1,265 (5) 5. Sumo Power $1,402 (15) 6. Powerdirect $1,416 (9) 7. Simply Energy $1,466 (3) 8. Origin Energy $1,524 (13) 9. AGL $1,530 (8) 10. Energy Australia $1,543 (7) 11. Globird $1,550 (2) 12. Commander $1,569 (14) 13. Powershop $1,577 (12) 14. Diamond $1,581 (17) 15. Lumo Energy $1,581 (6) 16. Covau $1,586 (11) 17. 1st Energy $1,597 (16) 18. Blue NRG $1,698 (-) 19. Momentum $1,735 (18) 20. Click Energy $1,828 (10) 31

33 21. People Energy $1,845 (20) 22. Online Power & Gas $1,851 (21) 23. Dodo $1,854 (19) 24. QEnergy $3,106 (22) Powercor In Powercor s network area, average consumption households on the worst standing offer can save approximately $2,335 per annum if switching to the best published market offer. Amaysim is the retailer that currently offers the best market offer rates in this network area. Chart 29 Powercor s network area: Estimated annual bills (incl GST) for electricity standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate) 4,000 3,500 3,000 2,500 2,000 1,500 1st Energy AGL Alinta Energy Click Energy Commander CovaU 1,000 Standing Market (ex POT) Market (inc POT) Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Diamond Energy Online Power & Gas Origin Energy Tango Energy People Energy Powerdirect Powershop Retail offers in Powercor's area Q Energy Red Energy Simply Energy Sumo Power Amaysim Blue NRG The difference between the best and the worst market offers is more than that of Citipower s network area. Amaysim s offer is approximately $2,230 less than QEnergy s market offer post discounts for households with this consumption level. Figure 2 below shows estimated annual bills for market offers post discounts in Powercor s network area as well their current ranking compared to their offers in July 2018 (brackets) Bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates 32

34 Figure 2 Powercor s network area: Lowest to highest annual bills 1. Amaysim $1,266 (-) 2. Tango Energy $1,310 (1) 3. Alinta $1,352(5) 4. Red Energy $1,410 (6) 5. Powerdirect $1,542 (8) 6. Sumo Power $1,563 (14) 7. Simply Energy $1,577 (3) 8. Lumo Energy $1,626 (4) 9. Globird $1,664 (2) 10. AGL $1,665 (7) 11. 1st Energy $1,668 (18) 12. Covau $1,702 (13) 13. Energy Australia $1,717 (10) 14. Powershop $1,728 (11) 15. Origin Energy $1,736 (12) 16. Diamond $1,767 (17) 17. Blue NRG $1,786 (-) 18. Commander $1,821 (15) 19. Momentum $1,892 (16) published on the retailers websites on mid-january 2018 (except for Tango Energy which was released on 5 February) and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 33

35 20. Click Energy $2,009 (9) 21. People Energy $2,158 (21) 22. Dodo $2,164 (20) 23. Online Power & Gas $2,222 (22) 24. QEnergy $3,497 (19) Ausnet In Ausnet s network area, average consumption households on the worst standing offer can save approximately $2,720 per annum if switching to the best published market offer. Amaysim is the retailer with the best market offer rates in this network area. Chart 30 Ausnet s network area: Estimated annual bills (incl GST) for electricity standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate) Standing Market (ex POT) Market (inc POT) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1st Energy AGL Alinta Energy Click Energy Commander CovaU 1,000 Diamond Energy Lumo Energy Momentum Energy Online Power & Gas Origin Energy Tango Energy Dodo Power & Gas EnergyAustralia GloBird Energy People Energy Powerdirect Powershop Q Energy Retail offers in Ausnet's area Red Energy Simply Energy Sumo Power Amaysim Blue NRG As in other network areas, the difference between the best and the worst market offers is significant. Amaysim s offer is approximately $2,290 less per annum than QEnergy s market offer post discounts for households with this consumption level. Figure 3 below shows estimated annual bills for market offers post discounts in Ausnet s network area as well their current ranking compared to their offers on July 2017 (brackets) Bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates 34

36 Figure 3 Ausnet s network area: Lowest to highest annual bills 1. Amaysim $1,375 (-) 2. Tango Energy $1,376 (1) 3. Alinta $1,487(10) 4. Red Energy $1,507 (4) 5. Powerdirect $1,613 (6) 6. Simply Energy $1,674 (3) 7. Sumo Power $1,679 (13) 8. AGL $1,746 (5) 9. Lumo Energy $1,778 (9) 10. Energy Australia $1,786 (7) 11. 1st Energy $1,794 (18) 12. Globird $1,810 (2) 13. Origin Energy $1,814 (11) 14. Covau $1,821 (12) 15. Powershop $1,830 (15) 16. Diamond $1,860 (16) 17. Blue NRG $1,944 (-) 18. Commander $1,996 (14) published on the retailers websites on mid-january 2018 (except for Tango Energy which was released on 5 February) and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 35

37 19. Momentum $2,050 (17) 20. Click Energy $2,204 (8) 21. People Energy $2,349 (21) 22. Dodo $2,376 (19) 23. Online Power & Gas $2,468 (22) 24. QEnergy $3,661 (20) Jemena In Jemena s network area, average consumption households on the worst standing offer can save approximately $2,350 per annum if switching to the best published market offer. Simply Energy is the retailers with the best market offer rates in this network area. Chart 31 Jemena s network area: Estimated annual bills (incl GST) for electricity standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate) 4,000 3,500 3,000 2,500 2,000 1,500 1st Energy AGL Alinta Energy Click Energy Commander CovaU 1,000 Standing Market (ex POT) Market (inc POT) Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Diamond Energy Online Power & Gas Origin Energy Tango Energy People Energy Powerdirect Retail offers in Jemenea's area Powershop Q Energy Red Energy Simply Energy Sumo Power Amaysim Blue NRG The difference between the best and the worst market offers is $2,015 per annum. Amaysim has the best value market offer rates and, again, QEnergy has the worst. Figure 4 below shows estimated annual bills for market offers post discounts in Jemena s network area as well their current ranking compared to their offers on July 36

38 2017 (brackets). 37 Figure 4 Jemena s network area: Lowest to highest annual bills 1. Amaysim $1,249 (-) 2. Tango Energy $1,314 (1) 3. Alinta $1,365(10) 4. Red Energy $1,373 (4) 5. Sumo Power $1,509 (13) 6. Powerdirect $1,550 (6) 7. Simply Energy $1,550 (3) 8. Origin Energy $1,616 (11) 9. Globird $1,619 (2) 10. 1st Energy $1,647 (18) 11. Energy Australia $1,655 (7) 12. Powershop $1,674 (15) 13. AGL $1,676 (5) 14. Lumo Energy $1,682 (9) 15. Covau $1,682 (12) 16. Diamond $1,707 (16) 37 Bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates published on the retailers websites on mid-january 2018 (except for Tango Energy which was released on 5 February) and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 37

39 17. Commander $1,789 (14) 18. Blue NRG $1,791 (-) 19. Momentum $1,807 (17) 20. Click Energy $2,026 (8) 21. People Energy $2,094 (21) 22. Dodo $2,131 (19) 23. Online Power & Gas $2,236 (22) 24. QEnergy $3,265 (20) United Energy In United Energy s network area, average consumption households on the worst standing offer can save approximately $2,180 per annum if switching to the best published market offer. Amaysim is again the retailer with the best market offer rates in this network area. Chart 32 United Energy s network area: Estimated annual bills (incl GST) for electricity standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate) 3,500 3,000 2,500 2,000 1,500 Standing Market (ex POT) Market (inc POT) 1,000 1st Energy Click Energy Commander CovaU AGL Alinta Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Diamond Energy Online Power & Gas Origin Energy Tango Energy People Energy Powerdirect Powershop Q Energy Red Energy Simply Energy Sumo Power Amaysim Blue NRG Retail Offers in United Energy's area 38

40 As in other network areas, the difference between the best and the worst market offers is significant. Amaysim s offer is approximately $2,050 less per annum than QEnergy s market offer post discounts for households with this consumption level. Figure 5 below shows estimated annual bills for market offers post discounts in United Energy s network area as well their current ranking compared to their offers in July 2017 (brackets). 38 Figure 5 United Energy s network area: Lowest to highest annual bills 1. Amaysim $1,182 (-) 2. Alinta $1,289 (10) 3. Tango Energy $1,300 (1) 4. Red Energy $1,315 (4) 5. Sumo Power $1,458 (13) 6. Powerdirect $1,462 (6) 7. Simply Energy $1,515 (3) 8. AGL $1,585 (5) 9. Origin Energy $1,592 (11) 10. Globird $1,601 (2) 11. Lumo Energy $1,607 (9) 12. Energy Australia $1,609 (7) 13. 1st Energy $1,623 (18) 14. Powershop $1,630 (15) 38 Bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates published on the retailers websites on mid-january 2018 (except for Tango Energy which was released on 5 February) and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 39

41 15. Diamond $1,637 (16) 16. Covau $1,660 (12) 17. Blue NRG $1,697 (-) 18. Commander $1,699 (14) 19. Momentum $1,833 (17) 20. Click Energy $1,914 (8) 21. Online Power & Gas $1,954 (22) 22. People Energy $1,956 (21) 22. Dodo $2,017 (19) 24. QEnergy $3,237 (20) 40

42 2.2 Gas market offers January Typical consumption households (63,000Mj) can save $1,000 - $1,300 per annum (depending on their gas zone) if switching from the worst standing offer to the best market offer. 40 The greatest potential savings are in the Evestra Central 1/Origin South East gas zone (Mornington Peninsula and Gippsland). 41 The difference between the best and the worst market offers ranges from $670 per annum (Ausnet Central 1/Tru Central gas zone) to $800 (Envestra North/Origin North gas zone) for customers with typical consumption levels. 42 Chart 33 below shows the retail market offer price-spread within each of the eight main gas pricing zones. Chart 33 Maximum price-spread in each pricing zone January 2018 (incl GST), including discounts and pay on time discounts - Households consuming 63,000Mj per annum 2,200 2,000 $ per annum 1,800 1,600 1,400 1,200 1,000 Multi 1 Multi 2 Envestra North Envestra Central 2 Envestra Central 1 Ausnet West Ausnet Central 2 Ausnet Central 1 As with electricity, additional discounts apply to the gas market offer rates. The majority of these discounts are now conditional on the customer paying the bill by the due date. Table 2 below shows additional discounts applicable to the gas retailers published market offer rates. 39 These bill estimates are based on rates published on the retailers websites in mid-january 2018 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 40 Based on the worst of the retailers standing offer and the best of the published market offers (including additional discounts and/or pay on time discounts). 41 Ibid. 42 Households using 63,000Mj per annum. All market offer bills include additional discounts and/or pay on time discounts. 41

43 Table 2 Gas market offer features January Retailer Name Effective from Guaranteed discount AGL^ Savers 10/1/18 no Alinta Energy Fair Deal 12/1/18 no Contract Pay on time discount term/benefit period 12% off usage 12 months no Early termination fee 25% off usage 24 months no Click Energy Amber 1/1/18 no 14% off bill no no Covau Smart Saver 1/1/18 no 16% off usage 12 months no* Dodo Power & Gas^ Market offer 1/10/17 no no no no EnergyAustralia^ Flexi Saver 2/1/18 no 16% off usage 12 months no Lumo Energy Advantage 19/1/17 no 15% off bill no no Momentum Energy^ Market offer 1/1/18 no no no no Origin Energy Saver 1/1/18 no 13% off usage 12 months no Red Energy Living Energy Saver NA no 10% off bill no no Simply Energy Plus 15/1/18 no 20% off usage 24 months no Sumo Power Pay on time 1/8/17 17% off usage 12 months Amaysim Gas 3 1/1/18 no 28% off bill no no * The retailer s statement is unclear regarding early termination fees ^ Additional discounts for direct debit, e-billing or dual fuel customers may apply Potential savings - Differences between gas offers Typical consumption households (63,000Mj per annum) on the worst standing offer can save $1,000 - $1,300 per annum if switching to the best published market offer (depending on their gas zone). Charts below show annual retail bills for typical consumption (63,000Mj per annum) for each of the eight main gas zones. The blue columns to the left represent the standing offer bill, the red columns are the market offers including guaranteed discounts (but not pay on time discounts) while the green columns are market offer bills including pay on time discounts. 44 As only five of the thirteen retailers offer gas as a stand alone product, figures 6-13 below, which rank gas market offers according to size of annual bill, do not include retailers that only offer gas in conjunction with electricity contracts Most retailers have more than one market offer product. The offers used for this analysis are those we deem on-going, key products with as few conditions (i.e. direct debit, e-billing and exit fees) as possible. These bill estimates are based on rates published on the retailers websites in mid-january Based on market offer bills that include discounts and pay on time discounts. 45 As a retailer with good value gas rates can have expensive electricity rates (and vice versa), we seek to focus on retail offers available to customers independently from other products. 42

44 Multinet 1/Origin Metro Gas Zone In the Origin Metro gas zone, average consumption households on the worst standing offer can save approximately $1,030 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone, however, as Red Energy only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Origin s. Chart 34 Multinet 1/Origin Metro gas zone: Estimated annual bills (incl GST) for gas standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum 46 Standing Market (ex POT) Market (incl POT) 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy Sumo Power Retail offers in Multinet 1/Origin Metro gas zone Amaysim Figure 6 below shows estimated annual bills for stand alone gas market offers post discounts in the Origin Metro gas zone as well as how they ranked compared to other retailers six in July 2017 (in brackets). The difference between the best (Origin) and the worst (Click) is approximately $450 per annum. 46 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 43

45 Figure 6 Multinet 1/Origin Metro gas zone: Lowest to highest annual bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum Origin Energy $1,513 (3) 2. Energy Australia $1,574 (1) 3. AGL $1,639 (2) 4. Covau $1,704 (5) 5. Click Energy $1,960 (4) Multinet 2/AGL South Gas Zone In the AGL South gas zone, average consumption households on the worst standing offer can save approximately $1,070 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone, however, as Red Energy only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Origin s. Chart 35 Multinet 2/AGL South gas zone: Estimated annual bills (incl GST) for gas standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum 48 Standing Market (ex POT) Market (incl POT) 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Retail offers in Multinet 2/AGL South gas zone Simply Energy Sumo Power Amaysim Figure 7 below shows estimated annual bills for stand alone gas market offers post discounts in the AGL South gas zone as well as how they ranked compared to other retailers in July 2017 (in brackets). The difference between the best (Origin) and the 47 These bill estimates are based on rates published on the retailers websites in mid-january Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 44

46 worst (Click) is approximately $450 per annum. Figure 7 Multinet 2/AGL South gas zone: Lowest to highest annual bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum Origin Energy $1,513 (3) 2. Energy Australia $1,574 (1) 3. AGL $1,646 (2) 4. Covau $1,704 (5) 5. Click Energy $1,960 (4) Envestra North/Origin North Gas Zone In the Origin North gas zone, average consumption households on the worst standing offer can save approximately $800 per annum if switching to the best published market offer. Red Energy is again the retailer with the best market offer rates in this gas zone, however, as Red only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Origin s. Chart 36 Envestra North/Origin North gas zone: Estimated annual bills (incl GST) for gas standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum 50 Standing Market (ex POT) Market (incl POT) 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy Sumo Power Retail offers in Envestra North/Origin North gas zone Amaysim 49 These bill estimates are based on rates published on the retailers websites in mid-january Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 45

47 Figure 8 below shows estimated annual bills for stand alone gas market offers post discounts in the Origin North gas zone as well as how they ranked compared to other retailers in July 2017 (in brackets). The difference between the best (Origin) and the worst (Click) is approximately $500 per annum. Figure 8 Envestra North/Origin North gas zone: Lowest to highest annual bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum Origin Energy $1,566 (3) 2. Energy Australia $1,596 (1) 3. Covau $1,673 (5) 4. AGL $1,646 (2) 5. Click Energy $2,065 (4) Envestra Central 2/Tru East Gas Zone In the Tru East gas zone, average consumption households on the worst standing offer can save approximately $1,270 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone, however, as Red only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Origin s. 51 These bill estimates are based on rates published on the retailers websites in mid-january

48 Chart 37 Envestra Central 2/Tru East gas zone: Estimated annual bills (incl GST) for gas standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum 52 Standing Market (ex POT) Market (incl POT) 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy Sumo Power Retail offers in Envestra Central 2/Tru East gas zone Amaysim Figure 9 below shows estimated annual bills for stand alone gas market offers post discounts in the Tru East gas zone as well as how they ranked compared to other retailers in July 2017 (in brackets). The difference between the best (Origin) and the worst (Click) is approximately $480 per annum. Figure 9 Envestra Central 2/Tru East gas zone: Lowest to highest annual bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum Origin Energy $1,566 (3) 2. AGL $1,589 (2) 3. Energy Australia $1,596 (1) 4. Covau $1,631 (5) 5. Click Energy $2,044 (4) 52 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers websites in mid-january 2018 and it must be noted that retailers may change their rates at any time. 47

49 Envestra Central 1/Origin South East Gas Zone In the Origin South East gas zone, average consumption households on the worst standing offer can save approximately $1,310 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone, however, as Red only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Origin s. Chart 38 Envestra Central 1/Origin South East gas zone: Estimated annual bills (incl GST) for gas standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum 54 Standing Market (ex POT) Market (incl POT) 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy Sumo Power Retail offers in Envestra Central 1/Origin South East gas zone Amaysim Figure 10 below shows estimated annual bills for stand alone gas market offers post discounts in the Origin South East gas zone as well as how they ranked compared to other retailers in July 2017 (in brackets). The difference between the best (Origin) and the worst (Click) is approximately $480 per annum. 54 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 48

50 Figure 10 Envestra Central 1/Origin South East gas zone: Lowest to highest annual bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum Origin Energy $1,566 (3) 2. Energy Australia $1,596 (1) 3. Covau $1,631 (5) 4. AGL $1,639 (2) 5. Click Energy $2,044 (4) Ausnet West/Tru West Gas Zone In the Tru West gas zone, average consumption households on the worst standing offer can save approximately $1,005 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone, however, as Red only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Origin s. Chart 39 Ausnet West/Tru West gas zone: Estimated annual bills (incl GST) for gas standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum 56 Standing Market (ex POT) Market (incl POT) 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, AGL Alinta Energy Click Energy Covau EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy Sumo Power Retail offers in Ausnet West/Tru West gas zone Amaysim 55 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers websites in mid-january 2018 and it must be noted that retailers may change their rates at any time. 56 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 49

51 Figure 11 below shows estimated annual bills for stand alone gas market offers post discounts in the Tru West gas zone as well as how they ranked compared to other retailers in July 2017 (in brackets). The difference between the best (Origin) and the worst (Click) is approximately $495 per annum. Figure 11 Ausnet West/Tru West gas zone: Lowest to highest annual bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum Origin Energy $1,419 (2) 2. Covau $1,527 (5) 3. Energy Australia $1,531 (1) 4. AGL $1,567 (3) 5. Click Energy $1,912 (4) Ausnet Central 2/AGL North Gas Zone In the AGL North gas zone, average consumption households on the worst standing offer can save approximately $1,115 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone, however, as Red only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Origin s. 57 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers websites in mid-january 2018 and it must be noted that retailers may change their rates at any time. 50

52 Chart 40 Ausnet Central 2/AGL North gas zone: Estimated annual bills (incl GST) for gas standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum 58 Standing Market (ex POT) Market (incl POT) 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy Sumo Power Retail offers in Ausnet Central 2/AGL North gas zone Amaysim Figure 12 below shows estimated annual bills for stand alone gas market offers post discounts in the AGL North gas zone as well as how they ranked compared to other retailers in July 2017 (in brackets). The difference between the best (Origin) and the worst (Click) is approximately $500 per annum. Figure 12 Ausnet Central 2/AGL North gas zone: Lowest to highest annual bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum Origin Energy $1,484 (2) 2. Energy Australia $1,633 (1) 3. AGL $1,684 (3) 4. Covau $1,705 (5) 5. Click Energy $1,982 (4) 58 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers websites in mid-january 2018 and it must be noted that retailers may change their rates at any time. 51

53 Ausnet Central 1/Tru Central Gas Zone In the Tru Central gas zone, average consumption households on the worst standing offer can save approximately $995 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone, however, as Red only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Origin s. Chart 41 Ausnet Central 1/Tru Central gas zone: Estimated annual bills (incl GST) for gas standing and market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum 60 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, Standing Market (ex POT) Market (incl POT) AGL Alinta Energy Click Energy Covau Dodo Power & Gas EnergyAustralia Lumo Energy Momentum Energy Origin Energy Red Energy Simply Energy Sumo Power Retail offers in Ausnet Central 1/Tru Central gas zone Amaysim Figure 13 below shows estimated annual bills for stand alone gas market offers post discounts in the Tru Central gas zone as well as how they ranked compared to other retailers in July 2017 (in brackets). The difference between the best (Origin) and the worst (Click) is approximately $500 per annum. 60 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 52

54 Figure 13 Ausnet Central 1/Tru Central gas zone: Lowest to highest annual bills (incl GST) for market offers January 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum Origin Energy $1,484 (2) 2. Energy Australia $1,633 (1) 3. AGL $1,696 (3) 4. Covau $1,705 (5) 5. Click Energy $1,982 (4) 2.3 Solar market offers January 2018 The maximum price-spread is around $555 in Ausnet, $480 in Jemena, United Energy and Powercor s areas, and $350 in Citipower. 62 Depending on network area, Melbourne solar customers with a 3kW system installed would on average pay between $970 and $1,025 less per annum compared to non-solar households. 63 Non-metropolitan households would on average pay between $1,100 and $1,200 less per annum compared to non-solar households. 64 While many solar customers currently receive a solar feed in rate (FIT) of 60 cents (the premium FIT scheme), this scheme is closed to new entrants and new solar customers should therefore carefully assess both the retailers FIT rates as well as the cost of electricity imported when choosing a solar offer. 65 This section analyses and compares market offer bills for Victorian customers with 1.5 kw and 3 kw systems installed. As retailers are not required to publish rates for solar products purchased and installed through them, this analysis only examines electricity offers available to customers independently of solar panels and installation. 61 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers websites in mid-january 2018 and it must be noted that retailers may change their rates at any time. 62 Based on the worst and the best of the published market offers for single rate customers using 4,800 kwh per annum and a 3kW solar system installed. Bills include additional discounts and/or pay on time discounts and FIT, 3kW solar system. 63 Ibid. 64 Ibid. 65 Approximately 88,000 households, small businesses and community groups are on the PFIT scheme and the 60 cents rate is set to last until 2024 see 53

55 Methodology and assumptions To calculate the annual bills for the various solar market offers the following assumptions and methodology have been applied: An annual household consumption of 4,800kWh (including both produced and imported). Calculations have been produced for households with 1.5 kw and 3 kw systems only. For Melbourne households, an annual generation capacity per kw installed of MWh and an export rate of 47.4% for 3 kw systems and 14.9% for 1.5 kw systems. 66 For non-metropolitan households, an annual generation capacity per kw installed of MWh and an export rate of 54.8% for 3 kw systems and 26.8% for 1.5 kw systems. 67 Only FIT rates available to new customers have been included. Retailer funded FIT rates have been applied as per offer (see table 3 below). A flat annual consumption has been assumed. The annual bills have been based on quarterly bill calculations and all step increases have been applied as quarterly thresholds (including when the retail offer refers to daily or monthly thresholds). Daily fixed charges have been multiplied by 91 to calculate the quarterly amount. 66 These figures are based analysis presented in a report for the Alternative Technology Association (ATA) by Alviss Consulting (Alviss Consulting, Retail Offers and Market Transparency for New Solar Customers, June 2013). 20Forecast%20PV%20Capacity%20&%20Tariff%20Payments.pdf 67 Ibid 54

56 Table 3: Retailers FIT rates Retailer* Offer FIT rate (c/kwh) AGL Savers 11.3 Alinta Energy Fair Deal 11.3 Click Energy Shine 20 Commander Market offer 11.6 Diamond Energy Pay on time discount 12 Dodo Power & Gas Dodo Electricity 11.6 EnergyAustralia Flexi Saver 11.3 GloBird Energy Glosave 12 Lumo Energy Advantage 11.3 Momentum Energy SmilePower 11.3 Origin Energy Solar Boost Plus 16 Tango Energy Home Select 11.3 Powerdirect Market offer 11.3 Powershop Online Saver 11.8 Red Energy Living Energy Saver 11.3 Simply Energy Plus 11.3 Sumo Power Pay on time 11.3 Amaysim Solar 2 18 Blue NRG Blue Regular 11.3 * 1 st Energy, Covau, Online, People Energy and QEnergy do not offer market offer contracts to solar customers in Victoria Chart 42 below compares annual retail bills for solar customers in Melbourne (Citipower) with 3 kw and 1.5 kw installed. It shows that for this consumption level, the average market offer bill for households in this area with a 3kW system installed is $670 and that is $970 less than the average market offer bill for non-solar customers (see chart 28 in section above). Households with a 1.5 kw system installed will have an annual bill of $1,030. Melbourne (Citipower) solar customers with 3 kw systems (and this consumption level) would be approximately $350 per annum better off on Amaysim s offer compared to Dodo s. Chart 42 also shows that Click s offer produces an annual bill that is above average for 1.5 kw systems despite having the highest FIT rate (20 c/kwh). This highlights the importance of solar customers not choosing retail offers based on FIT rates alone. 55

57 Chart 42 Annual bills including discounts and FIT credits for Melbourne/Citipower customers with 3 kw and 1.5 kw solar systems. Electricity offers in January 2018 as annual bills, Single rate, 4,800kWh (GST inc). 68 1,500 1,300 1, AGL Alinta Energy 3 kw 1.5 kw 3 kw avg 1.5 kw avg Click Energy Commander Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Origin Energy Tango Energy Powerdirect Powershop Red Energy Simply Energy Sumo Power Amaysim Blue NRG Chart 43 below shows annual bills for Melbourne solar customers in the Jemena network. It shows that for this consumption level, the average market offer bill for households in this area with a 3kW system installed is $725 and that is $1,025 less than the average market offer bill for non-solar customers (see chart 31 in section above). Households with a 1.5 kw system installed will have an annual bill of $1,100. Chart 43 Annual bills including discounts and FIT credits for Melbourne/Jemena customers with 3 kw and 1.5 kw solar systems. Electricity offers in January 2018 as annual bills, Single rate, 4,800kWh (GST inc). 69 1,500 1,300 1, Calculations include discounts off usage or bill as well as pay on time discounts off usage or bill. 69 Ibid. AGL Alinta Energy 3 kw 1.5 kw 3 kw avg 1.5 kw avg Click Energy Commander Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Origin Energy Tango Energy Powerdirect Powershop Red Energy Simply Energy Sumo Power Amaysim Blue NRG 56

58 Chart 44 below shows annual bills for Melbourne solar customers in the United Energy network. It shows that for this consumption level, the average market offer bill for households in this area with a 3kW system installed is $685 and that is $1,000 less than the average market offer bill for non-solar customers (see chart 32 in section above). Households with a 1.5 kw system installed will have an annual bill of $1,055. Chart 44 Annual bills including discounts and FIT credits for Melbourne/United Energy customers with 3 kw and 1.5 kw solar systems. Electricity offers in January 2018 as annual bills, Single rate, 4,800kWh (GST inc). 70 1,500 1,300 1, AGL Alinta Energy 3 kw 1.5 kw 3 kw avg 1.5 kw avg Click Energy Commander Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Origin Energy Tango Energy Powerdirect Powershop Red Energy Simply Energy Sumo Power Amaysim Blue NRG Homes outside Melbourne s metropolitan area will typically have less overshadowing and therefore a higher generation capacity and export rate. Chart 45 compares annual retail bills for non-metropolitan solar customers with 3 kw systems in four network areas (Jemena, United, Powercor and Ausnet). It shows that the average annual bill for non-metropolitan solar customers with this consumption level is approximately $625 in Jemena, $585 in United, $670 in Powercor and $725 in Ausnet. The average annual bill is $1,100 to $1,200 lower than the annual bill for non-solar customers (see section above for non-solar customers). 70 Ibid. 57

59 Chart 45 Annual bills including discounts and FIT credits for non-metropolitan customers in Jemena, United Energy, Powercor and Ausnet with 3 kw solar systems. Electricity offers in January 2018 as annual bills, Single rate, 4,800kWh (GST inc). 71 1,100 1, AGL Alinta Energy Jemena United Powercor Ausnet Click Energy Commander Diamond Energy Dodo Power & Gas EnergyAustralia GloBird Energy Lumo Energy Momentum Energy Origin Energy Tango Energy Powerdirect Powershop Red Energy Simply Energy Sumo Power Amaysim Blue NRG Figures below show estimated annual bills for solar market offers including FIT and discounts for Melbourne customers in Citipower, Jemena and United Energy s networks and non-metropolitan customers in the Powercor and Ausnet networks (all based on 3 kw systems) as well as how they ranked compared to other retailers in July 2017 (in brackets). 72 The maximum price-spread is around $555 in Ausnet, $480 in Jemena, United Energy and Powercor s areas, and $350 in Citipower. 71 Ibid. 72 These bill estimates are based on rates published on the retailers websites in mid-january Bill calculations include guaranteed discounts and pay on time discount but any additional discounts for customers choosing to pay by direct debit are not included. Annual consumption of 4,800kWh annum (including both produced and imported), single rate, and GST inclusive. Note that Tango Energy was formerly known as Pacific Hydro. 58

60 Figure 13 Lowest to highest annual bills (incl GST) for solar market offers in January 2018 in the Citipower network 1. Amaysim. $504 (-) 2. Tango Energy $520 (1) 3. Alinta $553 (8) 4. Red Energy $555 (7) 5. Origin Energy $633 (3) 6. Sumo Power $640 (13) 7. Powershop $649 (4) 8. Simply Energy $653 (6) 9. Powerdirect $660 (12) 10. Globird $661 (2) 11. Lumo Energy $684 (5) 12. Diamond $701 (14) 13. AGL $716 (11) 14. Energy Australia $721 (9) 15. Commander $722 (10) 16. Click Energy $730 (16) 17. Blue NRG $809 (-) 18. Momentum $831 (15) 19. Dodo $852 (17) 59

61 Figure 14 Lowest to highest annual bills (incl GST) for solar market offers in January 2018 in the Jemena network 1. Amaysim. $512 (-) 2. Tango Energy $584 (1) 3. Red Energy $588 (6) 4. Alinta $603 (12) 5. Origin Energy $646 (3) 6. Sumo Power $672 (9) 7. Simply Energy $682 (4) 8. Globird $684 (2) 9. Powershop $688 (7) 10. Lumo Energy $717 (5) 11. Powerdirect $740 (11) 12. Diamond $750 (13) 13. Energy Australia $761 (8) 14. Click Energy $772 (16) 15. AGL $803 (10) 16. Commander $839 (14) 17. Blue NRG $845 (-) 18. Momentum $874 (15) 19. Dodo $997 (17) 60

62 Figure 15 Lowest to highest annual bills (incl GST) for solar market offers in January 2018 in the United Energy network 1. Amaysim. $467 (-) 2. Red Energy $552 (7) 3. Tango Energy $562 (6) 4. Alinta $563 (11) 5. Origin Energy $629 (2) 6. Powershop $643 (5) 7. Simply Energy $653 (3) 8. Sumo Power $658 (14) 9. Globird $659 (1) 10. Lumo Energy $670 (4) 11. Powerdirect $671 (10) 12. Click Energy $709 (15) 13. Diamond $719 (12) 14. AGL $731 (9) 15. Energy Australia $740 (8) 16. Blue NRG $789 (-) 17. Commander $794 (13) 18. Momentum $848 (16) 19. Dodo $940 (17) 61

63 Figure 16 Lowest to highest annual bills (incl GST) for solar market offers in January 2018 in the Powercor network 1. Amaysim. $458 (-) 2. Tango Energy $495 (1) 3. Alinta $523 (8) 4. Red Energy $538 (6) 5. Lumo Energy $637 (5) 6. Simply Energy $637 (4) 7. Origin Energy $639 (3) 8. Globird $642 (2) 9. Powershop $647 (7) 10. Sumo Power $658 (13) 11. Powerdirect $659 (11) 12. Click Energy $695 (15) 13. AGL $719 (10) 14. Diamond $736 (16) 15. Energy Australia $737 (9) 16. Blue NRG $771 (-) 17. Commander $775 (12) 18. Momentum $862 (14) 19. Dodo $933 (17) 62

64 Figure 17 Lowest to highest annual bills (incl GST) for solar market offers in January 2018 in the Ausnet network 1. Amaysim. $497 (-) 2. Tango Energy $554 (1) 3. Red Energy $596 (6) 4. Alinta $600 (8) 5. Origin Energy $676 (3) 6. Powerdirect $678 (11) 7. Simply Energy $683 (4) 8. Powershop $687 (7) 9. Globird $694 (2) 10. Lumo Energy $695 (5) 11. Sumo Power $716 (13) 12. AGL $743 (10) 13. Click Energy $760 (15) 14. Diamond $769 (16) 15. Energy Australia $770 (9) 16. Blue NRG $862 (-) 17. Commander $876 (12) 18. Momentum $893 (14) 19. Dodo $1,052 (17) 63

65 3. Electricity network charges and bill-stack trends The Victorian electricity networks introduce new Network Use of System (NUOS) charges as of 1 January every year. These NUOS charges comprise Transmission Use of System (TUOS) and Distribution Use of System (DUOS) and the retailers can, and generally will, build changes to the NUOS (in relation to both shape and price) into their retail tariffs. 73 Electricity bills are made up of several components, including generation (wholesale market) costs, network costs (distribution and transmission), green schemes and costs associated with other public policy initiatives, and retail costs. In Victoria, where retail prices are deregulated, effective competition is required to ensure that households do not pay more than necessary for both generation (wholesale) and retail services (including retail margins). This section therefore seeks to explore the cost of each component, as well as changes to these cost components over time. Chart 46 below shows that NUOS charges remained relatively stable from 2008 to 2010 and that the maximum difference to the annual NUOS charge (for this consumption level) was approximately $100. The maximum difference between networks is currently around $200 per annum. From July 2011 to July 2013 the NUOS charges increased in all of Victoria s electricity network but since then there have been some increases and some decreases, depending on the network area. In January 2018, however, the NUOS only increased in the United Energy network area. Chart 46 NUOS charges from 2008 to 2018 as estimated annual cost (GST exclusive) for households using 4,800kWh per annum, single rate Citipower Powercor Ausnet Jemena UE NUOS CHARGES ($) PER ANNUM Note that NUOS charges do not include smart metering costs. 74 The annual NUOS charges have been calculated by allocating 1,200kWh per quarter (again based on annual consumption of 4,800kWh) to the step charges stipulated in the NUOS. The annual NUOS cost also includes fixed charges. Note that as United Energy s NUOS charge has been a seasonal tariff over the last four years, the United Energy consumption used in these calculations is thus based on a proportional allocation of a 5 month summer tariff and a 7 month non-summer (off-peak) rate. 64

66 In January 2017, the NUOS charges remained unchanged in the Citipower network, increased in United Energy s network areas, and decreased in Powercor, Ausnet and Jemena. Chart 54 shows changes to NUOS in January Chart 47 Changes NUOS charges in January 2018 as $ per annum (GST exclusive) and % for households using 4,800kWh per annum, single rate 75 $ change Powercor Ausnet Jemena UE $ Change % Change % change Chart 48 below looks at NUOS charges as a proportion of total bill. It shows that the NUOS proportion of electricity bills is currently highest in Ausnet (26%) and lowest in Citipower (20%). Furthermore, it shows that the NUOS proportion of bills have decreased in all network areas since July Chart 48 NUOS charges (excl GST) from July 2008 to January 2018 as proportion (%) of annual retail bill (incl. GST) for electricity regulated/standing offers, 4,800kWh per annum, single rate 76 Citipower Powercor Ausnet Jemena UE NUOS AS PROPORTION (%) OF BILL Ibid. 76 The standing offer bill is based on the average incumbent (AGL, Origin and Energy Australia) standing offer as of July every year (except for in 2017 and 2018 where it is based on January offers). Note that as United Energy s NUOS charge has been a seasonal tariff over the last three years, the United Energy consumption used in these calculations is thus based on a proportional allocation of a 5 month summer tariff and a 7 month non-summer (off-peak) rate. 65

67 In order to examine what households actually pay for the various services (and policies) that are costed by the supply chain and passed on to consumers in the form of a retail bill, tables 4 6 below estimate the retail component of bills for standing offer customers, market offer customers and new solar market offers. All tables are based on households consuming 4,800 kwh per annum at a single rate tariff. As we do not know exactly what retailers pay for wholesale energy we have used the forecast average pool price of $91.2/MWh for 2018/19 as modelled by ACIL Allen Consulting. 77 We note that the Australian Energy Market Commission (AEMC) wholesale price forecast for 2018/19 is a fair bit higher at $118.2/MWh but as the January and July 2017 analyses were also based on the ACIL Allen forecast, we decided to continue using their estimate for consistency. 78 The NUOS is based on network tariffs as of January 2018, environmental scheme costs are based on the 2017/18 costs published in AEMC s 2017 Residential Electricity Price Trends, and smart meter costs are based on the AER s indicative annual metering bill for By deducting GST, NUOS costs, wholesale costs, the cost of environmental policies ( green schemes ) and the cost of rolling out smart meters, amounts in the final row represent the estimated retail component (retail costs and profits). On average, across all five network areas, the estimated retail component is approximately $850 per annum for standing offer customers, $530 for market offer customers (including pay on time discounts) and $70 for solar customers (including pay on time discounts) This is also the forecast price used by ESC when proposing the minimum FIT rate from 1 July See ESC, Minimum electricity feed-in-tariffs to apply from 1 July 2018, Draft decision, 19 December See AEMC, 2017 Residential Electricity Price Trends, Final Report, (December 2017), 122. We use forecasted wholesale costs rather than actual as retailers set their prices based on forecasting. 79 See AEMC, 2017 Residential Electricity Price Trends, Final Report (December 2017) and AER, Advanced Metering Infrastructure, Transition charges applications, Final Decision (December 2016), table Note that this is based on components of customers bills and not retailers revenue from each customer type. The energy exported by solar customers does, for example, have a value to the retailers. 66

68 Table 4 Deduction of bill components for standing offers, average annual bill based on offers taking effect post January 2018 (4,800kWh per annum, single rate) 81 Citipower Powercor Ausnet Jemena United Retail bill incl. GST^ 1,982 2,148 2,250 2,097 2,031 Retail bill excl. GST 1,802 1,953 2,045 1,906 1,846 Retail bill excl. GST and NUOS* 1,409 1,483 1,454 1,467 1,397 Retail bill excl. the above and whole-sale^^ 972 1,046 1,016 1, Retail bill excl. the above and LRET-LGC** 936 1, Retail bill excl. the above and SRES-STC** Retail bill excl. the above and FIT schemes** Retail bill excl. the above and VEET** Retail bill excl. the above and smart meter costs*** ^ Based on the three incumbents average standing offers (January 2018) * NUOS as of January 2018 ^^Based on $91.2/MWh 0.75 c/kwh, 0.32 c/kwh, 0.38 c/kwh and 0.22 c/kwh ***Based on AER estimated AMI charges for This table is based on the same offers shown for January 2018 in charts 1-3 above. 67

69 Table 5 Deduction of bill components for market offers (including pay on time discounts), average annual bill based on offers taking effect post January 2018 (4,800kWh per annum, single rate) Citipower Powercor Ausnet Jemena United Retail bill incl. GST^ 1,611 1,785 1,917 1,750 1,682 Retail bill excl. GST 1,465 1,623 1,743 1,591 1,529 Retail bill excl. GST and NUOS* 1,072 1,153 1,152 1,152 1,080 Retail bill excl. the above and whole-sale^^ Retail bill excl. the above and LRET-LGC** Retail bill excl. the above and SRES-STC** Retail bill excl. the above and FIT schemes** Retail bill excl. the above and VEET** Retail bill excl. the above and smart meter costs*** ^ Average across all retailers (January 2018) 82 * NUOS as of January 2018 ^^Based on $91.2/MWh 0.75 c/kwh, 0.32 c/kwh, 0.38 c/kwh and 0.22 c/kwh ***Based on AER estimated AMI charges for As discussed in section 2.1 above, some retailers produce significantly higher (and to a lesser extent lower) annual bills than the rest. These outliers do therefore shew the average. However, as the July and January 2017 market offer analyses were based on the average bill across all retailers, we have taken the same approach in this analysis in order to ensure consistency. It is, however, important to note that if we exclude the single highest and the single lowest retail bill, the average retail component (across all network areas) would currently be $485 instead of $

70 Table 6 Deduction of bill components for solar market offers (including pay on time discounts), average annual bill based on offers taking effect post January 2018 (4,800kWh per annum, single rate), Metropolitan households with 3kW system installed Citipower Powercor Ausnet Jemena United Retail bill incl. GST^ Retail bill excl. GST Retail bill excl. GST and NUOS* Retail bill excl. the above and whole-sale^^ Retail bill excl. the above and LRET-LGC** Retail bill excl. the above and SRES-STC** Retail bill excl. the above and FIT schemes** Retail bill excl. the above and VEET** Retail bill excl. the above and smart meter costs*** ^ Average across all retailers (January 2018) * NUOS as of January 2018 ^^Based on $91.2/MWh 0.75 c/kwh, 0.32 c/kwh, 0.38 c/kwh and 0.22 c/kwh ***Based on AER estimated AMI charges for 2018 Based on the calculations in tables 4 6 above, charts show estimated proportional bill stacks for these three customer groups as of January They show that the retail component is the largest component of standing offer bills while the retail, wholesale and NUOS components are quite similar for market offer customers. In relation to solar bills, the NUOS component is the largest component followed by wholesale costs. 69

71 Chart 49 Estimated bill-stack for standing offers, proportions (%) of total bill (excl. GST), average annual bill based on the offers taking effect post January 2018 (4,800kWh per annum, single rate, excluding GST) 83 NUOS Wholesale Retail Green Schemes Smart meters CITIPOWER POWERCOR AUSNET JEMENA UE Chart 50 Estimated bill-stack for market offers (including pay on time discounts), proportions (%) of total bill (excl. GST), average annual bill based on the offers taking effect post January 2018 (4,800kWh per annum, single rate, excluding GST) 84 NUOS Wholesale Retail Green Schemes Smart meters CITIPOWER POWERCOR AUSNET JEMENA UE 83 This chart is based on the calculation used for table 4 above 84 This chart is based on the calculation used for table 5 above 70

72 Chart 51 Estimated bill-stack for solar market offers (including pay on time discounts), proportions (%) of total bill (excl. GST), average annual bill based on the offers taking effect post January 2018 (3 kw system, 4,800kWh per annum, single rate, excluding GST) 85 NUOS Wholesale Retail Green Schemes Smart meters CITIPOWER POWERCOR AUSNET JEMENA UE Chart 52 shows the retail component as proportion of total bill for standing offer, market offer and solar offer customers. Chart 52 Estimated retail proportion (%) of bills for standing offers, market offers (including pay on time discounts) and solar market offers (including pay on time discounts), average annual bill based on the offers taking effect post January 2018 (3 kw system, 4,800kWh per annum, single rate, excluding GST) Retail component of bill (%) Citipower Powercor Ausnet Jemena UE Standing Market Solar Charts show the estimated retail component as proportion of total bill for standing offer, market offer and solar offer customers as of January 2017, July 2017 and January It shows that compared to one year ago (January 2017) the proportional retail component has increased the most for market offer customers. For solar customers it has increased since July 2017 but it is still lower than it was in January This chart is based on the calculation used for table 6 above. 71

73 Chart 53 Estimated retail proportion (%) of bills for standing offers in January 2017, July 2017 and January 2018, bills based on 4,800kWh per annum, single rate, excluding GST Retail component (%) of standing offer bills Citipower Powercor Ausnet Jemena UE Jan-17 Jul-17 Jan-18 Chart 54 Estimated retail proportion (%) of bills for market offers (including pay on time discounts) in January 2017, July 2017 and January 2018, bills based on 4,800kWh per annum, single rate, excluding GST Retail component (%) of market offer bills Citipower Powercor Ausnet Jemena UE Jan-17 Jul-17 Jan-18 72

74 Chart 55 Estimated retail proportion (%) of bills for solar market offers (including pay on time discounts) in January 2017, July 2017 and January 2018, bills based on 3 kw system, 4,800kWh per annum, single rate, excluding GST Retail component (%) of solar bills Citipower Powercor Ausnet Jemena UE Jan-17 Jul-17 Jan-18 73

75 4. Total cost of energy and price changes by area As approximately 60% of Victorian households are connected to both electricity and gas, it is important to analyse whether there are areas that have experienced high increases in both electricity and gas prices, and conversely, whether there are areas where the increases in electricity and gas prices are at the lower end. Such analysis allows for a more detailed understanding of the total energy costs faced by households across Victoria. 86 The analysis presented in this section shows that dual fuel households have received higher price increases than all-electric households and that regional differences in combined energy (electricity and gas) price increases are mostly due to the electricity component. Table 7 Electricity standing offer price changes (average) by area January 2017 to January 2018 Area Annual bill change Percentage change since January 2017 Inner city and Eastern suburbs (Citipower) $ % Outer Western suburbs and Western Victoria $255 $330* 13.6% 14.1%* (Powercor) Outer Northern and Eastern suburbs and Eastern Victoria (SP Ausnet) $245 $315* 12.3% 13.0%* Inner West and Northern suburbs (Jemena) $ % Outer South Eastern suburbs and Mornington Peninsula (United Energy) * For all-electric households with peak/off-peak (controlled load) rates $ % 86 The figures in tables 7-10 are based on the incumbent retailers average standing offer for electricity and gas customers for dual fuel households using 4800kWh and 63,000Mj per annum, and all-electric households using 7000kWh (thereof 30% off-peak). To calculate the increases we have used the average of the incumbent retailers standing offer rates rather than the average of all standing offers. This was done because the vast majority of customers on the standing offer are with the incumbents (AGL, Origin and Energy Australia). Furthermore, as discussed above, market offers do generally reflect the increases to the standing offers. 74

76 Table 8 Gas standing offer price changes (average) by area from January 2017 to January 2018 Area Eastern and South Eastern suburbs (Multinet 1/Origin Metro zone) Bayside and outer South Eastern suburbs (Multinet 2/AGL South zone) Northern and North Eastern Victoria (Envestra North/Origin North zone) CBD, inner city and North Eastern suburbs (Envestra Central 2/TRU East zone) Frankston, Mornington Peninsula and Gippsland (Envestra Central 1/Origin South East zone) Macedon Ranges, Bendigo, Ballarat and Western Victoria (Ausnet West/TRU West zone) Western and North Western suburbs (Ausnet Central 2/AGL North zone) Outer Western suburbs, Geelong and Bellarine Peninsula (Ausnet Central 1/TRU Central zone) Annual bill change Percentage change since January 2017 $ % $ % $ % $ % $ % $ % $ % $ % Table 9 Average annual electricity bill by area. Based on standing offers January 2018 Area Avg. annual bill Inner city and Eastern suburbs (Citipower) $1,930 Outer Western suburbs and Western Victoria (Powercor) $2.150 $2,645* Outer Northern and Eastern suburbs and Eastern Victoria (SP Ausnet) $2,250 $2,745* Inner West and Northern suburbs (Jemena) $2,100 Outer South Eastern suburbs and Mornington Peninsula (United Energy) * For all-electric households with peak/off-peak (controlled load) rates $2,030 75

77 Table 10 Average annual gas bill by area. Based on standing offers January 2018 Area Avg. annual bill Eastern and South Eastern suburbs (Multinet 1/Origin Metro zone) $1,790 Bayside and outer South Eastern suburbs (Multinet 2/AGL South zone) $1,790 Northern and North Eastern Victoria (Envestra North/Origin North zone) CBD, inner city and North Eastern suburbs (Envestra Central 2/TRU East zone) Frankston, Mornington Peninsula and Gippsland (Envestra Central 1/Origin South East zone) Macedon Ranges, Bendigo, Ballarat and Western Victoria (Ausnet West/TRU West zone) Western and North Western suburbs (Ausnet Central 2/AGL North zone) Outer Western suburbs, Geelong and Bellarine Peninsula (Ausnet Central 1/TRU Central zone) $1,830 $1,800 $1,820 $1,700 $1,815 $1, Inner city, inner North and Eastern suburbs Source: Citipower The electricity standing offer has on average increased by $240 for average consumption households (4800kWh) over the last year for households in this area. Households in the TRU East gas zone (CBD and inner North) have experienced an increase in gas prices of approximately $190 over the same period. 76

78 Households with an average consumption of electricity and gas in Melbourne (CBD), Brunswick, Carlton, Fitzroy, Northcote, Richmond and Collingwood will typically receive an increase in energy costs of $430 compared to last year. 87 Households with an average consumption of electricity and gas in the inner Eastern suburbs of Kew, Hawthorn, Camberwell and Balwyn, and the inner South East areas of South Yarra, Prahran, Armadale, Toorak and Caulfield, will typically receive an increase in energy costs of $445 compared to last year. 88 Households with an average consumption of electricity and gas in the inner city bay side suburbs of St Kilda, Port Melbourne, Albert Park and South Melbourne will typically receive an increase in energy costs of $445 compared to last year Inner West and North Western Suburbs Source: Essential Services Commission The electricity standing offer has on average increased by $235 for average consumption households (4800kWh) over the last year for customers in this area. Households in the AGL North gas zone (Western and North Western suburbs) have experienced an increase in gas prices of approximately $180 over the same period. 87 Citipower s electricity distribution network and Envestra s TRU East gas zone. 88 Citipower s electricity distribution network and Multinet s Origin Metro gas zone. 89 Citipower s electricity distribution network and Multinet s AGL South gas zone. 77

79 Households with an average consumption of electricity and gas in Footscray, Yarraville, Williamstown, Flemington, Moonee Ponds, Broadmeadows, Coolaroo, Braybrook and Sydenham will typically receive an increase in energy costs of $415 compared to last year. 90 Households with an average consumption of electricity and gas in Heidelberg, Fairfield, Ivanhoe, Bundoora, Thomastown, Preston, Reservoir will typically receive an increase in energy costs of $425 compared to last year South Eastern suburbs and Mornington Peninsula Source: Essential Services Commission The electricity standing offer has on average increased by approximately $260 for average consumption households (4800kWh) over the last year for customers in this area. Households in the Origin South East gas zone (Mornington Peninsula and outer South Eastern suburbs) have experienced an increase in gas prices of approximately $175 over the same period. Households with an average consumption of electricity and gas in the bayside suburbs of Elwood, Elsternwick, Brighton, Sandringham, Beaumaris, Chelsea and South Eastern Suburbs of Bentleigh, Moorabbin, Springvale, Noble Park, 90 Jemena s electricity distribution network and Ausnet s AGL North gas zone. 91 Jemena s electricity distribution network and Envestra s TRU East gas zone. 78

80 Keysborough will typically receive an increase in energy costs of $465 compared to last year. 92 Households with an average consumption of electricity and gas in the suburbs of Seaford and Frankston and on the Mornington Peninsula will typically receive an increase in energy costs of $435 compared to last year. 93 Households with an average consumption of electricity and gas in the Eastern suburbs of Bulleen, Templestowe, Box Hill, Doncaster, Mitcham, Vermont, Glen Waverly and Chadstone will typically receive an increase in energy costs of $465 compared to last year Outer Western suburbs and Western Victoria Source: Powercor All-electric households in this area would have typically experienced an electricity price increase of $330 over the last year (based on average consumption of 7000kWh). 95 For dual fuel households the electricity standing offer has on average increased by approximately $255 over the last year (based on average consumption of 4800kWh). Total energy cost increases for dual fuel households in the Western region will typically amount to: 92 United Energy s electricity distribution network and Multinet s AGL South gas zone. 93 United Energy s electricity distribution network and Envestra s Origin South East gas zone. 94 United Energy s electricity distribution network and Multinet s Origin Metro gas zone. 95 Based on the average electricity standing offer for households taking controlled load off-peak (annual consumption of 7000 kwh, 70% peak and 30% off-peak). 79

81 $430 for average consumption households in Hoppers Crossing, Werribee, Geelong region and on the Bellarine peninsula. 96 $430 for average consumption households in Macedon, Kyneton, Ballarat, Colac, Warrnambool, Portland, Hamilton, Horsham, Ararat and Daylesford. 97 $435 for average consumption households in Northern Victorian towns such as Echuca, Shepparton and Heathcote Outer Northern and Eastern suburbs and Eastern Victoria Source: Essential Services Commission All-electric households in this area would have typically experienced an electricity price increase of $315 over the last year (based on average consumption of 7000kWh). 99 For dual fuel households the electricity standing offer has on average increased by $245 over the last year (based on average consumption of 4800kWh). Total energy cost increases for dual fuel households in the Eastern Victoria will typically amount to: $450 for average consumption households in the Outer Northern and Eastern suburbs of Warrandyte, Ringwood, Chirnside Park and the area around Mount Dandenong. 100 $425 for average consumption households in Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga Powercor s electricity distribution network and Ausnet s TRU Central gas zone. 97 Powercor s electricity distribution network and Ausnet s TRU West gas zone. 98 Powercor s electricity distribution network and Envestra s Origin North gas zone. 99 Based on the average electricity standing offer for households taking controlled load off-peak (annual consumption of 7000 kwh, 70% peak and 30% off-peak). 100 Ausnet s electricity distribution network and Multinet s Origin Metro gas zone. 101 Ausnet s electricity distribution network and Envestra s Origin North gas zone. 80