Tariff Structure Statement

Essential Energy

In late 2014, a new National Electricity Rule was introduced, requiring electricity distribution businesses like Essential Energy to introduce ‘cost reflective’ network tariffs.

Network tariffs cover the costs of the electricity network, including infrastructure, staff, maintenance of poles and wires and bushfire risk management programs. They make up about 40 per cent of an average residential electricity bill.

In developing our tariffs, Essential Energy aims to reduce real long-term average prices by promoting efficient network investment and utilisation. Our Tariff Structure Statement (TSS) – a requirement of the new rule – sets out how we will achieve this for the two year period from 2017–19.

The key objective of our TSS is to ensure that our customers have a clear understanding of:

  • Why we are proposing changes to our tariffs
  • Our proposed network tariff structures
  • How our tariffs promote efficient network investment and utilisation
  • The impact on customers of our proposed changes
  • How we plan to transition customers to these new network tariffs.

Feedback on this TSS
A key objective of this TSS is to reflect on the views of our customers and stakeholders when preparing our proposal. Essential Energy’s customers and stakeholders can provide feedback on this proposed TSS and supporting documents through the following channels:

Manager Network Regulation
Essential Energy
PO Box 5730
Port Macquarie NSW 2444

Phone: 13 23 91

Customers can also provide feedback and comments on Essential Energy’s Tariff Structure Statement to the AER at www.aer.gov.au.


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