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Sapere critique of Queensland Competition Authority’s Draft (and Final) Determination for retail electricity prices for 2016-17

On 31 May 2016, the Queensland Competition Authority (QCA) issued its Final Determination for Regulated retail electricity prices for 2016-17. This determination relates to the “R” component of retail prices seen by customers. The “N” or network component is set by the Australian Energy Regulator. Under the final decision, regulated retail prices in Queensland increase, while the “N” component is decreasing.

Sapere prepared a report on the QCA’s March Draft Determination for CANEGROWERS, funded by Energy Consumers Australia. The report found there is no basis for a significant increase in the “R” component. The bulk of the increase represents a change in the methodology adopted by the QCA compared with the previous 2015 Determination, not a change in real world costs. As there is no substantial change from QCA’s Draft Determination, the critique in the Sapere report applies to the Final Determination.

Authors

Simon Orme

Simon provides expert consulting services.

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Dr James Swansson

James advises on public policy and regulatory economics.

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