ADVOCACY > EDPR
NAGA and EAGA make final submissions
UPDATE: NAGA and EAGA have made their final submission to the 2016-2020 Electricity Distribution Price Review that provides feedback on the draft submissions of the electricity distributors.
The final letter to the Australian Energy Regulator is available.
The final letter to the Australian Energy Regulator is available.
NAGA delivers $7.5 million value from advocacy work on street lights
The Australian Energy Regulator (AER) has passed down its preliminary determination on electricity prices, which has delivered substantial savings for NAGA councils.
NAGA has worked with the Eastern Alliance for Greenhouse Action (EAGA) to engage Ironbark Sustainability to develop a joint submission on behalf of the local government sector.
Our submission provided a technical analysis and evaluation of the five regulatory pricing proposals provided by Victoria’s electricity distribution businesses, with the objective of capturing cost savings for councils through public lighting charges and supporting innovative initiatives that reduce emissions. The full submission can be accessed here.
The AER determination says the following outcomes were directly attributed to our submission.
NAGA has worked with the Eastern Alliance for Greenhouse Action (EAGA) to engage Ironbark Sustainability to develop a joint submission on behalf of the local government sector.
Our submission provided a technical analysis and evaluation of the five regulatory pricing proposals provided by Victoria’s electricity distribution businesses, with the objective of capturing cost savings for councils through public lighting charges and supporting innovative initiatives that reduce emissions. The full submission can be accessed here.
The AER determination says the following outcomes were directly attributed to our submission.
- The proposal to move dedicated public lights to a ‘negotiated framework’ was rejected by the AER (based on advocacy by councils)
- Total minimum streetlight OMR savings across the state using top down data is estimated at $22 million over the next 5 years
- Total savings in NAGA councils using bottom up street light data is estimated at $1.5 million for 2016, and $7.5 million for the next 5 years.
- $10M was allocated to demand management programs across the NAGA region (such as residential battery storage trials which could be delivered in partnership with local government).
Savings in public lighting charges to NAGA region directly as a result of the Alliance submission
LGA
Hume
Whittlesea
Melbourne
Yarra
Darebin
Moreland
Manningham
Banyule
Nillumbik
Total simple savings
|
2016 savings
$671,783
$134,903
$54,376
$266,334
$195,929
$193,684
$1,517,009
|
5 year savings (2016-2020)
$335,8915
$674,515
$271,880
$1,331,670
$979,645
$968,420
$7,585,045
|
Note that savings from public lighting are not evenly distributed and vary across distribution region and technology type
Whilst there were no savings identified in the Ausnet Services region (Whittlesea, Nillumbik and Manningham), it should be noted that these councils will benefit from the EAGA lead LED OMR negotiation in 2014. EAGA facilitated a collective negotiation between SP AusNet and the Councils within its distribution area on OMR charges for LED street lights. Through this process, the region’s Councils were able to secure significant costs reductions (~ 30%) that will result in savings between $200K – $300K in the first year and up $6M over the life time of the assets.
Importantly, this decision from the AER is not final. All stakeholders have a second opportunity to respond to the AERs determination through a second submission processes (due 6th Jan 2016).
This is likely to be a short submission, addressing a few anomalies in the AERs decision, which could generate additional savings for councils in the United Energy region (Manningham). Following this consultation, the AER will revoke its preliminary decision and substitute it with a final decision to be published by the end of April 2016.
What is the EDPR process? Under the National Electricity Rules, the AER conducts a pricing review for electricity distribution every five years. Through the EDPR, the regulator determines the prices the network businesses can charge for safe, reliable electricity supply to their customers. The current pricing period expires on 31st December 2015. This includes setting the operation, maintenance and replacement (OMR) charges for street lights where even minor changes can have significant cost implications for councils. The outcomes of the determination process also impact ability of the distribution business to undertake distributed energy or demand management projects, which can be implemented in partnership with councils.
Whilst there were no savings identified in the Ausnet Services region (Whittlesea, Nillumbik and Manningham), it should be noted that these councils will benefit from the EAGA lead LED OMR negotiation in 2014. EAGA facilitated a collective negotiation between SP AusNet and the Councils within its distribution area on OMR charges for LED street lights. Through this process, the region’s Councils were able to secure significant costs reductions (~ 30%) that will result in savings between $200K – $300K in the first year and up $6M over the life time of the assets.
Importantly, this decision from the AER is not final. All stakeholders have a second opportunity to respond to the AERs determination through a second submission processes (due 6th Jan 2016).
This is likely to be a short submission, addressing a few anomalies in the AERs decision, which could generate additional savings for councils in the United Energy region (Manningham). Following this consultation, the AER will revoke its preliminary decision and substitute it with a final decision to be published by the end of April 2016.
What is the EDPR process? Under the National Electricity Rules, the AER conducts a pricing review for electricity distribution every five years. Through the EDPR, the regulator determines the prices the network businesses can charge for safe, reliable electricity supply to their customers. The current pricing period expires on 31st December 2015. This includes setting the operation, maintenance and replacement (OMR) charges for street lights where even minor changes can have significant cost implications for councils. The outcomes of the determination process also impact ability of the distribution business to undertake distributed energy or demand management projects, which can be implemented in partnership with councils.