Regulatory Proposal - Tariff Structure Statement Working Group

To support the Energy Queensland Customer Council, we established a Working Group dedicated solely to our Regulatory Proposals and Tariff Structure Statements customer and stakeholder engagement and consultation.

The Working Group has met monthly over the past two years to build participants capacity to understand our industry and its regulatory framework. This has allowed us to explore collaboratively the detail around our proposed investment and tariff reform plans.

The Working Group fully represents our different customer segments (residential, business and larger commercial and industrial) and represents the diversity of our state-wide service area.

Below, and in the Document Library on this page you can find the presentations and other material from the Working Group forums.

Our Working Group members have played a key role in providing us with valuable insights and thoughts to our work around the Regulatory Proposals and Tariff Structure Statements.

We will continue to engage and consult with our customers and stakeholders throughout 2019.

Summary of RP-TSS Working Group Forums

Forum 15 - Our Revised Regulatory Proposal and Revised Tariff Structure Statements (17^th December 2019)

The Forum provided an opportunity to engage working members on:

A summary of Our Revised Regulatory Proposals (RRP) and Tariff Structure Statements (TSS)
Our engagement program
Reflections and learnings from the process
Next steps

Forum 14 - Tariff Deep Dives (16^th October 2019)

The Forum provided an opportunity to engage working members on:

Recap on the network tariff reform journey to date and outline how we have considered feedback from our customers and aligned to guidance from the Australian Energy Regulator’s Draft Decisions on the TSS (Oct 2019) in finalising our proposed suite of residential network tariffs for the 2020-25 regulatory period.
An analysis of customer impacts resulting from the proposed suite of residential network tariffs, delivered by the University of New South Wales.
The purpose-built model to estimate the potential impacts to the network tariff component of a range of residential customers’ electricity bills reflecting the diversity of residential demographics and energy usage across Queensland.

Forum 13 - Our proposed response to AER Draft Decisions on our Regulatory Proposals (14^th December 2019)

The Forum provided an opportunity to engage working members on:

Overview of key changes impacting our operating environment since submitting our Regulatory Proposal in January 2019 and highlight our priorities.
Learn the areas of common agreement with the Draft Decisions.
Recap the key points of the Regulatory Proposals highlighted at the 16 October RP-TSS Working Group Forum
Highlight the work undertaken by Energy Queensland in progressing towards submitting Revised Regulatory Proposals in December 2019 within the context of:
- Reliability
- Sustainability
- Affordability
Note the customer and stakeholder engagement plan and timeline through to December 2019.
- Forum 13 Agenda
- Forum 13 Presentations

Forum 12 - Reflections, Progress and Next Steps (16^th October 2019)

The Forum provided an opportunity to engage working members on:

Understand the AER’s Draft Decisions on Energex’s and Ergon Energy Network’s RPs and TSSs
Learn the areas of common agreement with the Draft Decisions
Understand Energex and Ergon Energy Network’s areas of concern and areas of further focus as work continues towards the revised Regulatory Proposals (RPs) and TSSs to be submitted to the AER in December
Note the customer and stakeholder engagement plan and timeline through to December 2019
Ask questions and points of clarification on the Draft Decisions, focus areas and planned engagement activity

Forum 11 – Looking Back, Moving Forward: Responding to Feedback on Our Draft Plans 2020-25 and Network Tariff Summaries (7^th November 2018)

The Forum provided an opportunity to engage working members on:

Customer feedback and submissions to Our Draft Plans 2020-25 and how this has shaped our approach going forward
Customer feedback and submissions to the Network tariff Summary consultation papers and how this has shaped our approach going forward
The revised approach to ICT investment, with particular emphasis on the business cases for Customer and Market Systems, Asset, Works and Operations Systems and Corporate Systems and Cybersecurity
Outstanding issues raised through engagement to date centred on the key themes of affordability, reliability and security
- Forum 11 Summary Report
- Forum 11 Presentations

Forum 10 – Our Draft Plans: Progress towards the Regulatory Proposals and Tariff Structure Statements (5th September 2018)

The Forum provided an opportunity to engage Working Group members on:

Our Draft Plans 2020-25 (our draft thinking for the Regulatory Proposals based on customer feedback to date)
Our ‘Network Tariff Summary’ consultation papers (our draft thinking on the Tariff Structure Statements based on customer feedback to date)

Forum 9 – Customer Engagement, Research and Insights / Key Issues Exploration (1^st August 2018)

The Forum provided an opportunity to engage Working Group members on:

The findings of qualitative customer research as a basis for informing quantitative market research to be undertaken in late August/September
The findings of the online Talking Energy survey conducted with customers
Further information relating to opex, overheads and financial treatment
Further information on ICT
Further information on tariff reform

Forum 8 – Ergon Energy Capital and Operating Expenditure (5^th July 2018)

The Forum provided an opportunity to engage Working Group members on the following issues specifically in relation to Ergon:

Opex forecast and key drivers
Investments to evolve the network to be a future electricity system
Asset management and replacement, vegetation management and overhead network inspections programs
Capex and augex expenditure
Efficiencies and ensuring best value for customers

Please note that Forum 8 also allowed time to cover some common issues for both Ergon Energy Network and Energex namely:

Demand Management programs, including the Demand Management Innovation Allowance (DMIA) and Demand Management Incentive Scheme (DMIS)
Asset management and replacement, vegetation management and overhead network inspections programs.

Forum 7 – Energex Capital and Operating Expenditure (4^th July 2018)

The Forum provided an opportunity to engage Working Group members on the following issues specifically in relation to Energex:

Opex forecast and key drivers
Investments to evolve the network to be a future electricity system
Asset management and replacement, vegetation management and overhead network inspections programs
Capex and augex expenditure
Efficiencies and ensuring best value for customers

Forum 6 – Non System Investments and Connections Policy (27^th June 2018)

The Forum provided an opportunity to engage Working Group members on:

Property and fleet strategy over the 2020-2025 regulatory period
How the ICT strategy aligns with the Energy Queensland corporate strategy, what’s driving decision making for ICT asset replacement and how ICT programs will enable savings to be delivered throughout the businesses
Proposed changes to align Ergon Energy Network and Energex’s Connection policies for the next regulatory period 2020-25

Forum 5 – Building Blocks (25^th June 2018)

The Forum provided an opportunity for to engage Working Group members on:

An overview of the building block approach to forecasting the cost of supply
An explanation of the Regulated Asset Base (RAB) and drivers of the current RAB size
Proposed changes in the treatment of Information and Communication Technology (ICT)
The new lease accounting standard and an overview of the Cost Allocation Method (CAM)
Depreciation, insurance and operating expenditure methodology
Financing costs and notional taxation incentive schemes for the current regulatory period and outline of those that are expected in relation to the 2020-25 regulatory period

Forum 4 – Expenditure Forecasts (11^th June 2018)

The Forum provided an opportunity to engage Working Group members on expenditure forecasts for operating expenditure (Opex) and capital expenditure (Capex). Topics included:

Energy Queensland merger savings
The network investment methodology and approach
Service performance in relation to safety, feeder type, new connections and peak demand
Opex forecasting and expenditure forecasts for both networks across the 2020-2025 regulatory period
Non-system capex proposals, current trends and drivers specifically in relation to the areas of ICT, property and fleet
An overview of capex including augmentation capital expenditure (augex), customer connections capital expenditure (conex), asset replacement capex (repex) and capitalised overheads

Forum 3 – The Network of the Future and Non-Network Alternatives (3^rd May 2018)

The Forum provided an opportunity to engage Working Group members on:

The strategic approach for future network investment in transitioning to an intelligent grid
The Regulatory Investment Test for Distribution (RiT-D)
Demand Management investment initiatives, future plans and opportunities regarding demand side management

Forum 2 – Tariff Reform (5^th April 2018)

The Forum provided an opportunity to engage Working Group members on:

The Tariff Structure Statement - purpose, principles, framework and approach
The future of tariffs in Queensland and the drivers for tariff reform
Different tariff structures to be considered
Review of the Ergon Energy Network and Energex draft Network Tariffs 2020-25 Tariff Structure Statement Customer Consultation Paper (April 2018)

Forum 1 - Introduction to the Regulatory Proposal and Tariff Structure Statement (6^th March 2018)

The Forum provided an opportunity to provide Working Group members with:

An update on both Ergon Energy Network and Energex’s performance in the current regulatory period and the challenges faced for the next regulatory period 2020-25
An overview of the Regulatory Proposal and Tariff Structure Statement (TSS) process
An overview of the engagement approach and timeline, including key topics and themes to be consulted
An update on our customer research and insights to date and the forthcoming research program to inform business decisions around the Regulatory Proposal and Tariff Structure Statement.

Regulatory Proposal (RP) and Tariff Structure Statement (TSS) Working Group Members

Dean Lombard, Alternative Technology Association
Dale Hollis, Bundaberg Irrigators
Warren Males, Canegrowers
Mary Carroll, Capricorn Enterprise
Steven Gorasevski, Chamber of Commerce and Industry
Pamela Bessette, City of Gold Coast Council
Neil Horrocks, CitySmart
Maryanne Coffey, Clean Energy Council
Robyn Robinson, COTA (Council of the Aging) Queensland
Andrew Splatt, Cotton Australia
Sabiene Heindl, Energy Consumers Australia (ECA)
Darlene Irvine, FNQ Regional Organisation of Councils
Michael Fullelove, Local Government Association QLD (LGAQ)
Scott Britton, Local Government Association QLD (LGAQ)
Anthony King, Master Electricians Australia
Peter Lamont, National Electrical and Communications Association (NECA)
David Warner, National Seniors Association
Anne Nalder, Small Business Association of Australia
Andrew Barger, QLD Resources Council
Rose McGrath, Queensland Council of Social Service (QCOSS)
Luke Read, Queensland Council of Social Service (QCOSS)
Georgina Davis, Queensland Farmers Federation
Bruce Cooke, Solar Citizens Association
Judene Andrews, Uniting Care QLD
Martin Zaltron, Urban Development Institute of Australia (UDIA)

Edge of Grid Webinar

Below is a recording of the Edge of Grid Webinar that took place on Monday 4 June 2018.

The Working Group fully represents our different customer segments (residential, business and larger commercial and industrial) and represents the diversity of our state-wide service area.

Below, and in the Document Library on this page you can find the presentations and other material from the Working Group forums.

Our Working Group members have played a key role in providing us with valuable insights and thoughts to our work around the Regulatory Proposals and Tariff Structure Statements.

We will continue to engage and consult with our customers and stakeholders throughout 2019.

Summary of RP-TSS Working Group Forums

Forum 15 - Our Revised Regulatory Proposal and Revised Tariff Structure Statements (17^th December 2019)

The Forum provided an opportunity to engage working members on:

A summary of Our Revised Regulatory Proposals (RRP) and Tariff Structure Statements (TSS)
Our engagement program
Reflections and learnings from the process
Next steps

Forum 14 - Tariff Deep Dives (16^th October 2019)

The Forum provided an opportunity to engage working members on:

Recap on the network tariff reform journey to date and outline how we have considered feedback from our customers and aligned to guidance from the Australian Energy Regulator’s Draft Decisions on the TSS (Oct 2019) in finalising our proposed suite of residential network tariffs for the 2020-25 regulatory period.
An analysis of customer impacts resulting from the proposed suite of residential network tariffs, delivered by the University of New South Wales.
The purpose-built model to estimate the potential impacts to the network tariff component of a range of residential customers’ electricity bills reflecting the diversity of residential demographics and energy usage across Queensland.

Forum 13 - Our proposed response to AER Draft Decisions on our Regulatory Proposals (14^th December 2019)

The Forum provided an opportunity to engage working members on:

Overview of key changes impacting our operating environment since submitting our Regulatory Proposal in January 2019 and highlight our priorities.
Learn the areas of common agreement with the Draft Decisions.
Recap the key points of the Regulatory Proposals highlighted at the 16 October RP-TSS Working Group Forum
Highlight the work undertaken by Energy Queensland in progressing towards submitting Revised Regulatory Proposals in December 2019 within the context of:
- Reliability
- Sustainability
- Affordability
Note the customer and stakeholder engagement plan and timeline through to December 2019.
- Forum 13 Agenda
- Forum 13 Presentations

Forum 12 - Reflections, Progress and Next Steps (16^th October 2019)

The Forum provided an opportunity to engage working members on:

Understand the AER’s Draft Decisions on Energex’s and Ergon Energy Network’s RPs and TSSs
Learn the areas of common agreement with the Draft Decisions
Understand Energex and Ergon Energy Network’s areas of concern and areas of further focus as work continues towards the revised Regulatory Proposals (RPs) and TSSs to be submitted to the AER in December
Note the customer and stakeholder engagement plan and timeline through to December 2019
Ask questions and points of clarification on the Draft Decisions, focus areas and planned engagement activity

Forum 11 – Looking Back, Moving Forward: Responding to Feedback on Our Draft Plans 2020-25 and Network Tariff Summaries (7^th November 2018)

The Forum provided an opportunity to engage working members on:

Customer feedback and submissions to Our Draft Plans 2020-25 and how this has shaped our approach going forward
Customer feedback and submissions to the Network tariff Summary consultation papers and how this has shaped our approach going forward
The revised approach to ICT investment, with particular emphasis on the business cases for Customer and Market Systems, Asset, Works and Operations Systems and Corporate Systems and Cybersecurity
Outstanding issues raised through engagement to date centred on the key themes of affordability, reliability and security
- Forum 11 Summary Report
- Forum 11 Presentations

Forum 10 – Our Draft Plans: Progress towards the Regulatory Proposals and Tariff Structure Statements (5th September 2018)

The Forum provided an opportunity to engage Working Group members on:

Our Draft Plans 2020-25 (our draft thinking for the Regulatory Proposals based on customer feedback to date)
Our ‘Network Tariff Summary’ consultation papers (our draft thinking on the Tariff Structure Statements based on customer feedback to date)

Forum 9 – Customer Engagement, Research and Insights / Key Issues Exploration (1^st August 2018)

The Forum provided an opportunity to engage Working Group members on:

The findings of qualitative customer research as a basis for informing quantitative market research to be undertaken in late August/September
The findings of the online Talking Energy survey conducted with customers
Further information relating to opex, overheads and financial treatment
Further information on ICT
Further information on tariff reform

Forum 8 – Ergon Energy Capital and Operating Expenditure (5^th July 2018)

The Forum provided an opportunity to engage Working Group members on the following issues specifically in relation to Ergon:

Opex forecast and key drivers
Investments to evolve the network to be a future electricity system
Asset management and replacement, vegetation management and overhead network inspections programs
Capex and augex expenditure
Efficiencies and ensuring best value for customers

Please note that Forum 8 also allowed time to cover some common issues for both Ergon Energy Network and Energex namely:

Demand Management programs, including the Demand Management Innovation Allowance (DMIA) and Demand Management Incentive Scheme (DMIS)
Asset management and replacement, vegetation management and overhead network inspections programs.

Forum 7 – Energex Capital and Operating Expenditure (4^th July 2018)

The Forum provided an opportunity to engage Working Group members on the following issues specifically in relation to Energex:

Opex forecast and key drivers
Investments to evolve the network to be a future electricity system
Asset management and replacement, vegetation management and overhead network inspections programs
Capex and augex expenditure
Efficiencies and ensuring best value for customers

Forum 6 – Non System Investments and Connections Policy (27^th June 2018)

The Forum provided an opportunity to engage Working Group members on:

Property and fleet strategy over the 2020-2025 regulatory period
How the ICT strategy aligns with the Energy Queensland corporate strategy, what’s driving decision making for ICT asset replacement and how ICT programs will enable savings to be delivered throughout the businesses
Proposed changes to align Ergon Energy Network and Energex’s Connection policies for the next regulatory period 2020-25

Forum 5 – Building Blocks (25^th June 2018)

The Forum provided an opportunity for to engage Working Group members on:

An overview of the building block approach to forecasting the cost of supply
An explanation of the Regulated Asset Base (RAB) and drivers of the current RAB size
Proposed changes in the treatment of Information and Communication Technology (ICT)
The new lease accounting standard and an overview of the Cost Allocation Method (CAM)
Depreciation, insurance and operating expenditure methodology
Financing costs and notional taxation incentive schemes for the current regulatory period and outline of those that are expected in relation to the 2020-25 regulatory period

Forum 4 – Expenditure Forecasts (11^th June 2018)

The Forum provided an opportunity to engage Working Group members on expenditure forecasts for operating expenditure (Opex) and capital expenditure (Capex). Topics included:

Energy Queensland merger savings
The network investment methodology and approach
Service performance in relation to safety, feeder type, new connections and peak demand
Opex forecasting and expenditure forecasts for both networks across the 2020-2025 regulatory period
Non-system capex proposals, current trends and drivers specifically in relation to the areas of ICT, property and fleet
An overview of capex including augmentation capital expenditure (augex), customer connections capital expenditure (conex), asset replacement capex (repex) and capitalised overheads

Forum 3 – The Network of the Future and Non-Network Alternatives (3^rd May 2018)

The Forum provided an opportunity to engage Working Group members on:

The strategic approach for future network investment in transitioning to an intelligent grid
The Regulatory Investment Test for Distribution (RiT-D)
Demand Management investment initiatives, future plans and opportunities regarding demand side management

Forum 2 – Tariff Reform (5^th April 2018)

The Forum provided an opportunity to engage Working Group members on:

The Tariff Structure Statement - purpose, principles, framework and approach
The future of tariffs in Queensland and the drivers for tariff reform
Different tariff structures to be considered
Review of the Ergon Energy Network and Energex draft Network Tariffs 2020-25 Tariff Structure Statement Customer Consultation Paper (April 2018)

Forum 1 - Introduction to the Regulatory Proposal and Tariff Structure Statement (6^th March 2018)

The Forum provided an opportunity to provide Working Group members with:

An update on both Ergon Energy Network and Energex’s performance in the current regulatory period and the challenges faced for the next regulatory period 2020-25
An overview of the Regulatory Proposal and Tariff Structure Statement (TSS) process
An overview of the engagement approach and timeline, including key topics and themes to be consulted
An update on our customer research and insights to date and the forthcoming research program to inform business decisions around the Regulatory Proposal and Tariff Structure Statement.

Regulatory Proposal (RP) and Tariff Structure Statement (TSS) Working Group Members

Dean Lombard, Alternative Technology Association
Dale Hollis, Bundaberg Irrigators
Warren Males, Canegrowers
Mary Carroll, Capricorn Enterprise
Steven Gorasevski, Chamber of Commerce and Industry
Pamela Bessette, City of Gold Coast Council
Neil Horrocks, CitySmart
Maryanne Coffey, Clean Energy Council
Robyn Robinson, COTA (Council of the Aging) Queensland
Andrew Splatt, Cotton Australia
Sabiene Heindl, Energy Consumers Australia (ECA)
Darlene Irvine, FNQ Regional Organisation of Councils
Michael Fullelove, Local Government Association QLD (LGAQ)
Scott Britton, Local Government Association QLD (LGAQ)
Anthony King, Master Electricians Australia
Peter Lamont, National Electrical and Communications Association (NECA)
David Warner, National Seniors Association
Anne Nalder, Small Business Association of Australia
Andrew Barger, QLD Resources Council
Rose McGrath, Queensland Council of Social Service (QCOSS)
Luke Read, Queensland Council of Social Service (QCOSS)
Georgina Davis, Queensland Farmers Federation
Bruce Cooke, Solar Citizens Association
Judene Andrews, Uniting Care QLD
Martin Zaltron, Urban Development Institute of Australia (UDIA)

Edge of Grid Webinar

Below is a recording of the Edge of Grid Webinar that took place on Monday 4 June 2018.

Page last updated: 15 Jan 2021, 11:21 AM

Regulatory Proposal - Tariff Structure Statement Working Group

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