Policy and Regulatory Working Group
The Policy and Regulatory Working Group (PRWG) acts as an advisory group on the development of TasNetworks’ distribution pricing strategy. The broad representation within this group, from electricity retailers, energy advisors, customer advocates and representatives of the business community, allows a diverse range of customer views to be represented, discussed and heard.
Each quarter, the PRWG meet to collaborate on the development of our 2024-29 pricing strategy. These workshops provide a platform for two-way and transparent communication, with the aim of building and evolving effective relationships between TasNetworks and its stakeholders and customers.
The resources from these workshops, including minutes, actions, presentations and additional reading papers, are available to all PRWG members via the links to the right. We encourage our members to reach out if they have any questions, comments or observations on any of the topics discussed to date.
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November workshop marks the half-way point
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In mid-November, TasNetworks’ welcomed back the PRWG members for the last workshop of 2021. This also marked the half-way point in the PRWG engagement journey in relation to the 2024-29 regulatory control period, between engagement commencing in June 2020 and the point at which TasNetworks will submit its proposal for 2024-29 to the Australian Energy Regulator.
The workshop explored network tariff options that would reflect the value of network connection for an embedded network, this being a capacity charge as preferred by the PRWG at the previous workshop.
This session also looked at revisions for two existing network tariffs: the small business time of use network tariff and the residential demand DER network tariff.
Outcomes
Members provided valuable input into the development and refinement of our pricing strategy for 2024-29.
In regards to the embedded network discussion, overall there was general support of the concept of a capacity-based charge as part of a network tariff designed specifically for embedded networks.
Looking at revisions to the existing small business time of use network tariff, members indicated a preference for the removal of the weekend shoulder period and the reduction of the peak period on weekdays. This was followed closely by a second option which mirrored the same weekday time of use periods but retained the weekend shoulder period although with a slight reduction in its length.
When discussing the residential demand based DER network tariff, the group was supportive of extending the evening peak out of the four alternatives presented by TasNetworks.
Next steps
We will continue to explore the design of an embedded network tariff and the revisions identified to some of TasNetworks’ existing network tariffs. We will continue the discussion at the next workshop, scheduled for early April 2022
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July workshop focusses on future-ready pricing
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In early July, TasNetworks held a workshop with our PRWG members to discuss how to best prepare network pricing for the changing needs and expectations of Tasmanian customers. TasNetworks demonstrated trends we are seeing the network, before then discussing how to adapt network pricing to facilitating increasing levels of Distributed Energy Resources (DER) technology, such as solar PV, battery storage and electric vehicles. Part of this discussion included a focus on our network tariff assignment policy and options for tariff trials in 2024-29. We also began a discussion on the need to develop and introduce a purpose-designed embedded network tariff.
Outcomes
Our PRWG members provided valuable guidance on how to best prepare our network pricing for the continued uptake of new technologies. The group discussed a preference to make flat rate tariff structures obsolete, via certain triggers and with customer protections in place. This approach ensures that we aligned with our pricing principles, which aim to provide simple and fair pricing to customers.
The group also designed a set of guiding principles in the development and implementation of tariff trials. The group supported trials that are transparent, Tasmanian-focussed and rewards customers for efficient network utilisation. Members also provided suggestions for trials TasNetworks could explore, including export charging, community batteries and an electric vehicle pricing options.
Members also began a discussion around a purpose-designed embedded network tariff. Although this discussion is still in its early stages, the group indicated a preference for TasNetworks to explore capacity based tariff structures that allow for flexibility within an embedded network tariff. Read more about the July workshop outcomes.
Next Steps
A number of great results came out of the last workshop. We will continue to explore how TasNetworks can prepare for changing customer expectations with the continued growth of new technology. The next workshop is scheduled for November 2021.
