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Tariff and Concession Framework Review
Aden Barker
Office of Energy
Energy Affordability
Session Overview
1.Who we are – Office of Energy
2.The Tariff & Concession Framework Review
3.TCF Review Findings
4.Some TCF Review Conclusions
Energy Affordability – TCF Review
Who we are:
“The Office of Energy leads the development and implementation of policy and programs to meet Western Australia's energy needs”.
1. The Office of Energy
What does that mean?:Policy advice on:• Consumer protection• Consumer price impacts• Energy concessions
Coordination of Programs:• Hardship Efficiency Program• Fridge Replacement Scheme
1. The Office of Energy
Considering ways of charging for electricity and providing concessions to:
1.improve the affordability of essential electricity use;
2.facilitate the equitable, efficient and full recovery of the cost of
supplying electricity;
3.provide clear information to consumers regarding the impact
of their electricity use; and
4.provide targeted assistance for those who most require it.
2. The Tariff & Concession Framework (TCF) Review
How did we do it?
• Public Consultation• Tariff and Concession Modelling• Household Energy Characteristics Survey
2. The Tariff & Concession Framework (TCF) Review
• Issues Paper (88 submissions)
• 9 Regional Consultation Sessions
• Project Reference Group
2. TCF Review - Consultation
Major issues Raised:
•Energy Affordability
•Inclining Block Tariffs
•Concessions
•Energy Efficiency
•Defining Essential Energy use
2. TCF Review - Consultation
DISCLAIMER
Putting it into Perspective
3. TCF Review - Findings
Putting it into Perspective
3. TCF Review - Findings
(ABS)
Putting it into Perspective
3. TCF Review - Findings
Putting it into Perspective
3. TCF Review - Findings
However … Many Households Are Using More
3. TCF Review - Findings
However … ‘Average’ Doesn’t Mean Much
3. TCF Review - Findings
However … Less Use = Different Price Signals
3. TCF Review - Findings
However … Electricity is Still Heavily Subsidised
3. TCF Review - Findings
Attribution of Synergy TAP
0
50
100
150
200
250
300
350
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
($)
Mil
lio
n
Non-Concession Concession
However … Income Plays a Big Role (ABS)
3. TCF Review - Findings
So, what do we take from all this?
•Payment difficulty is caused by a number of
factors – not just electricity prices
•Assistance should be tailored and targeted
•Consumption information for consumers is
important
4. TCF Review - Conclusions
So, what do we take from all this?
•There’s a need for improved communication by
Government in this area
•Significant scope for improved energy efficiency
•Concessions policy may be better coordinated
across State Government
4. TCF Review - Conclusions
QUESTIONS?