NETWORK CHARGES

What Are Network Charges?

Network charges are a component of your electricity bill, covering the costs of maintaining and operating the electricity grid. They are separate from wholesale costs and retail margins and are typically less than half of your overall bill. Each year, electricity distributors submit pricing proposals to the Australian Energy Regulator (AER), detailing the network tariffs they plan to charge. These tariffs help recover the costs of delivering electricity to homes and businesses.

Changes to Network Charges

For the 2024-25 period, the AER has approved new pricing proposals, leading to an increase in network charges. This rise is driven by higher inflation, increased transmission costs, and other regulatory factors. As a result, Australians will see a 5% to 10% increase in the network portion of their energy bills.

Impact on Your Energy Bill

Starting from July 2024, the increase in network charges will impact your overall electricity bill. For Energex customers, this could mean an additional $89.54 for households and $96.83 for small businesses compared to the previous year.

Market Update

Key Electricity Market Observations This Month

• The energy sector has seen price stabilization in wholesale futures across the board.
• Generator outages we saw in back in June have not continued through to July, allowing spot and futures prices to soften.
• Callide 4 set to return to service.
• The New South Wales Government extended the operation of the Eraring Power Station until 2027, possibly to 2029, to ensure energy reliability.
• We will be monitoring both the short term and the long term forecast for our customers and clients. 

Article Contributed by, HumEnergy