Powerlink has proposed a 28 per cent reduction in the indicative transmission price in the first year of its next five year regulatory period. Starting next July, the move will save Queensland households between $22 and $37 on annual electricity bills.
The cost of Powerlink’s high voltage electricity grid represents around 9 per cent of the total delivered cost of electricity for the typical Queensland residential electricity consumer.
Powerlink chief executive Merryn York said the business had a commitment to putting downward pressure on electricity prices while still achieving reliability of supply outcomes.
“Our approach is to lower costs by minimising investment in our network using alternative practices while still maintaining the reliable supply consumers and customers expect,” she said.
Since submitting the proposal in late January, Powerlink has engaged with the Australian Energy Regulator (AER) and other key stakeholders to explain its approach and seek feedback on its Revenue Proposal.
“Stakeholder involvement is an important part of this process and our focus in the next few months is to continue engaging with stakeholders on the proposal. We will also keep working with the AER and respond to information requests to ensure all of the necessary information is available to assess our Revenue Proposal,” Ms York said.