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SAPN Regulatory Proposal 2020-25, AER Forum 4/4/19 Mark Henley - - PowerPoint PPT Presentation
SAPN Regulatory Proposal 2020-25, AER Forum 4/4/19 Mark Henley - - PowerPoint PPT Presentation
SAPN Regulatory Proposal 2020-25, AER Forum 4/4/19 Mark Henley Manager Advocacy 4 th April 2019 We recognise the traditional owners of the land we meet on: The Kaurna people. Students from Kaurna Plains school, Elizabeth SAPN:
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SAPN: Balancing Competing Objectives
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Affordable Sustainable Reliable
Energy’s Tectonic Plates
We focus on where the plates collide
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PV uptake
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ACCC
CPI Wages Electricity
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Electricity Price Changes, SA in red
90 110 130 150 170 190 210
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Electricity Retail Price Index, 2000 - 2018, AER
Brisbane Sydney Melbourne Adelaide Hobart Canberra National
Privatisation
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ACCC – Achievable Savings
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ACCC Prompted Observ rvations
- Prices still rising for SA consumers. Electricity
bills still #1 presenting issue for Financial Counselling (and other) clients
- SAPN not the main source of ACCC identifies
savings, but still needs to understand customer pain
- SAPN not expected to be the source of main
electricity price reductions, but still expected to do the best that they can
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Actual and forecast energy delivered
Lower demand than in the past, should be some benefits for consumers.
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Capex
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Connections
- 2015-20 is the first reg period using the NECF connection
arrangements of Chapter 5A of the NER.
- Does not appear that any review of performance to date.
- SAPN has proposed a revised Customer Connection Policy
(Attachment 16) and a capital expenditure program for connections of $213m net of customer contributions ($563m gross, Attachment 5).
- Changes to the classification and process are proposed – See
Issues Paper 8.4
- Connections costs: proposal > current period > draft plan
- But … no evidence of stakeholder engagement on connection
issues
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Opex
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Opex, Proposed Step Changes
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Opex
More work needed:
- Productivity
- Step Changes
- IT
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TAX
This is the hard one!
- New AER Guideline, this is
good
- SAPN seems to have been
impacted more than other db’s?
- SAPN responses impact opex,
capex, depreciation etc
- More thinking and discussion
needed before revised revenue proposal
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SAPN Future Network Engagement – to December 2018
Need future, Future Network Engagement plan – shared challenges, Shared Solutions
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DMIA 2016/17.
AER Data
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Summary Response to SAPN Reg proposal
SAPN efforts to bring prices down appreciated, but can they do better still? Seems to be room to move on:
- Opex productivity,
- IT,
- non-network capex,
- tax
- maybe connections,
- maybe tariffs
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