Regulatory Proposal - Tariff Structure Statement Working Group

To support the Energy Queensland Customer Council we have a Working Group dedicated solely to the Regulatory Proposal and the Tariff Structure Statement.

It is meeting monthly to build participants capacity to understand our industry and its regulatory framework, and allow us to explore collaboratively the detail of the matters under consideration.

To ensure the group fully represents our different customer segments (large and small) and the diversity in our state-wide service area, it includes the customer representatives from the Customer Council and additional members.

In the Document Library you can find the presentations and other material from these forums. Our RP-TSS Working Group members have played a key role in providing us with insights and thoughts to our work around the Regulatory Proposal and have been instrumental in helping us devise Our Draft Plans 2020-25 which was released in September 2018 for consultation. Take a look at the final submissions to Our Draft Plans 2020-25 which have now closed and are under review.


Summary of RP-TSS Working Group Forums

Forum 11 – Looking Back, Moving Forward: Responding to Feedback on Our Draft Plans 2020-25 and Network Tariff Summaries (7th November 2018)

The Forum provided an opportunity to engage working members on:

  • Customer feedback and submissions to Our Draft Plans 2020-25 and how this has shaped our approach going forward
  • Customer feedback and submissions to the Network tariff Summary consultation papers and how this has shaped our approach going forward
  • The revised approach to ICT investment, with particular emphasis on the business cases for Customer and Market Systems, Asset, Works and Operations Systems and Corporate Systems and Cybersecurity
  • Outstanding issues raised through engagement to date centred on the key themes of affordability, reliability and security

Forum 10 – Our Draft Plans: Progress towards the Regulatory Proposals and Tariff Structure Statements (5th September 2018)

The Forum provided an opportunity to engage Working Group members on:

  • Our Draft Plans 2020-25 (our draft thinking for the Regulatory Proposals based on customer feedback to date)
  • Our ‘Network Tariff Summary’ consultation papers (our draft thinking on the Tariff Structure Statements based on customer feedback to date)

Forum 9 – Customer Engagement, Research and Insights / Key Issues Exploration (1st August 2018)

The Forum provided an opportunity to engage Working Group members on:

  • The findings of qualitative customer research as a basis for informing quantitative market research to be undertaken in late August/September
  • The findings of the online Talking Energy survey conducted with customers
  • Further information relating to opex, overheads and financial treatment
  • Further information on ICT
  • Further information on tariff reform

Forum 8 – Ergon Energy Capital and Operating Expenditure (5th July 2018)

The Forum provided an opportunity to engage Working Group members on the following issues specifically in relation to Ergon:

  • Opex forecast and key drivers
  • Investments to evolve the network to be a future electricity system
  • Asset management and replacement, vegetation management and overhead network inspections programs
  • Capex and augex expenditure
  • Efficiencies and ensuring best value for customers

Please note that Forum 8 also allowed time to cover some common issues for both Ergon Energy Network and Energex namely:

  • Demand Management programs, including the Demand Management Innovation Allowance (DMIA) and Demand Management Incentive Scheme (DMIS)
  • Asset management and replacement, vegetation management and overhead network inspections programs.

Forum 7 – Energex Capital and Operating Expenditure (4th July 2018)

The Forum provided an opportunity to engage Working Group members on the following issues specifically in relation to Energex:

  • Opex forecast and key drivers
  • Investments to evolve the network to be a future electricity system
  • Asset management and replacement, vegetation management and overhead network inspections programs
  • Capex and augex expenditure
  • Efficiencies and ensuring best value for customers

Forum 6 – Non System Investments and Connections Policy (27th June 2018)

The Forum provided an opportunity to engage Working Group members on:

  • Property and fleet strategy over the 2020-2025 regulatory period
  • How the ICT strategy aligns with the Energy Queensland corporate strategy, what’s driving decision making for ICT asset replacement and how ICT programs will enable savings to be delivered throughout the businesses
  • Proposed changes to align Ergon Energy Network and Energex’s Connection policies for the next regulatory period 2020-25

Forum 5 – Building Blocks (25th June 2018)

The Forum provided an opportunity for to engage Working Group members on:

  • An overview of the building block approach to forecasting the cost of supply
  • An explanation of the Regulated Asset Base (RAB) and drivers of the current RAB size
  • Proposed changes in the treatment of Information and Communication Technology (ICT)
  • The new lease accounting standard and an overview of the Cost Allocation Method (CAM)
  • Depreciation, insurance and operating expenditure methodology
  • Financing costs and notional taxation incentive schemes for the current regulatory period and outline of those that are expected in relation to the 2020-25 regulatory period

Forum 4 – Expenditure Forecasts (11th June 2018)

The Forum provided an opportunity to engage Working Group members on expenditure forecasts for operating expenditure (Opex) and capital expenditure (Capex). Topics included:

  • Energy Queensland merger savings
  • The network investment methodology and approach
  • Service performance in relation to safety, feeder type, new connections and peak demand
  • Opex forecasting and expenditure forecasts for both networks across the 2020-2025 regulatory period
  • Non-system capex proposals, current trends and drivers specifically in relation to the areas of ICT, property and fleet
  • An overview of capex including augmentation capital expenditure (augex), customer connections capital expenditure (conex), asset replacement capex (repex) and capitalised overheads

Forum 3 – The Network of the Future and Non-Network Alternatives (3rd May 2018)

The Forum provided an opportunity to engage Working Group members on:

  • The strategic approach for future network investment in transitioning to an intelligent grid
  • The Regulatory Investment Test for Distribution (RiT-D)
  • Demand Management investment initiatives, future plans and opportunities regarding demand side management

Forum 2 – Tariff Reform (5th April 2018)

The Forum provided an opportunity to engage Working Group members on:

  • The Tariff Structure Statement - purpose, principles, framework and approach
  • The future of tariffs in Queensland and the drivers for tariff reform
  • Different tariff structures to be considered
  • Review of the Ergon Energy Network and Energex draft Network Tariffs 2020-25 Tariff Structure Statement Customer Consultation Paper (April 2018)

Forum 1 - Introduction to the Regulatory Proposal and Tariff Structure Statement (6th March 2018)

The Forum provided an opportunity to provide Working Group members with:

  • An update on both Ergon Energy Network and Energex’s performance in the current regulatory period and the challenges faced for the next regulatory period 2020-25
  • An overview of the Regulatory Proposal and Tariff Structure Statement (TSS) process
  • An overview of the engagement approach and timeline, including key topics and themes to be consulted
  • An update on our customer research and insights to date and the forthcoming research program to inform business decisions around the Regulatory Proposal and Tariff Structure Statement.


Regulatory Proposal (RP) and Tariff Structure Statement (TSS) Working Group Members

  • Dean Lombard, Alternative Technology Association
  • Dale Hollis, Bundaberg Irrigators
  • Warren Males, Canegrowers
  • Mary Carroll, Capricorn Enterprise
  • Steven Gorasevski, Chamber of Commerce and Industry
  • Pamela Bessette, City of Gold Coast Council
  • Neil Horrocks, CitySmart
  • Maryanne Coffey, Clean Energy Council
  • Robyn Robinson, COTA (Council of the Aging) Queensland
  • Andrew Splatt, Cotton Australia
  • Sabiene Heindl, Energy Consumers Australia (ECA)
  • Darlene Irvine, FNQ Regional Organisation of Councils
  • Michael Fullelove, Local Government Association QLD (LGAQ)
  • Scott Britton, Local Government Association QLD (LGAQ)
  • Anthony King, Master Electricians Australia
  • Peter Lamont, National Electrical and Communications Association (NECA)
  • David Warner, National Seniors Association
  • Anne Nalder, Small Business Association of Australia
  • Andrew Barger, QLD Resources Council
  • Rose McGrath, Queensland Council of Social Service (QCOSS)
  • Luke Read, Queensland Council of Social Service (QCOSS)
  • Georgina Davis, Queensland Farmers Federation
  • Bruce Cooke, Solar Citizens Association
  • Judene Andrews, Uniting Care QLD
  • Martin Zaltron, Urban Development Institute of Australia (UDIA)

Edge of Grid Webinar

Below is a recording of the Edge of Grid Webinar that took place on Monday 4 June 2018.


To support the Energy Queensland Customer Council we have a Working Group dedicated solely to the Regulatory Proposal and the Tariff Structure Statement.

It is meeting monthly to build participants capacity to understand our industry and its regulatory framework, and allow us to explore collaboratively the detail of the matters under consideration.

To ensure the group fully represents our different customer segments (large and small) and the diversity in our state-wide service area, it includes the customer representatives from the Customer Council and additional members.

In the Document Library you can find the presentations and other material from these forums. Our RP-TSS Working Group members have played a key role in providing us with insights and thoughts to our work around the Regulatory Proposal and have been instrumental in helping us devise Our Draft Plans 2020-25 which was released in September 2018 for consultation. Take a look at the final submissions to Our Draft Plans 2020-25 which have now closed and are under review.


Summary of RP-TSS Working Group Forums

Forum 11 – Looking Back, Moving Forward: Responding to Feedback on Our Draft Plans 2020-25 and Network Tariff Summaries (7th November 2018)

The Forum provided an opportunity to engage working members on:

  • Customer feedback and submissions to Our Draft Plans 2020-25 and how this has shaped our approach going forward
  • Customer feedback and submissions to the Network tariff Summary consultation papers and how this has shaped our approach going forward
  • The revised approach to ICT investment, with particular emphasis on the business cases for Customer and Market Systems, Asset, Works and Operations Systems and Corporate Systems and Cybersecurity
  • Outstanding issues raised through engagement to date centred on the key themes of affordability, reliability and security

Forum 10 – Our Draft Plans: Progress towards the Regulatory Proposals and Tariff Structure Statements (5th September 2018)

The Forum provided an opportunity to engage Working Group members on:

  • Our Draft Plans 2020-25 (our draft thinking for the Regulatory Proposals based on customer feedback to date)
  • Our ‘Network Tariff Summary’ consultation papers (our draft thinking on the Tariff Structure Statements based on customer feedback to date)

Forum 9 – Customer Engagement, Research and Insights / Key Issues Exploration (1st August 2018)

The Forum provided an opportunity to engage Working Group members on:

  • The findings of qualitative customer research as a basis for informing quantitative market research to be undertaken in late August/September
  • The findings of the online Talking Energy survey conducted with customers
  • Further information relating to opex, overheads and financial treatment
  • Further information on ICT
  • Further information on tariff reform

Forum 8 – Ergon Energy Capital and Operating Expenditure (5th July 2018)

The Forum provided an opportunity to engage Working Group members on the following issues specifically in relation to Ergon:

  • Opex forecast and key drivers
  • Investments to evolve the network to be a future electricity system
  • Asset management and replacement, vegetation management and overhead network inspections programs
  • Capex and augex expenditure
  • Efficiencies and ensuring best value for customers

Please note that Forum 8 also allowed time to cover some common issues for both Ergon Energy Network and Energex namely:

  • Demand Management programs, including the Demand Management Innovation Allowance (DMIA) and Demand Management Incentive Scheme (DMIS)
  • Asset management and replacement, vegetation management and overhead network inspections programs.

Forum 7 – Energex Capital and Operating Expenditure (4th July 2018)

The Forum provided an opportunity to engage Working Group members on the following issues specifically in relation to Energex:

  • Opex forecast and key drivers
  • Investments to evolve the network to be a future electricity system
  • Asset management and replacement, vegetation management and overhead network inspections programs
  • Capex and augex expenditure
  • Efficiencies and ensuring best value for customers

Forum 6 – Non System Investments and Connections Policy (27th June 2018)

The Forum provided an opportunity to engage Working Group members on:

  • Property and fleet strategy over the 2020-2025 regulatory period
  • How the ICT strategy aligns with the Energy Queensland corporate strategy, what’s driving decision making for ICT asset replacement and how ICT programs will enable savings to be delivered throughout the businesses
  • Proposed changes to align Ergon Energy Network and Energex’s Connection policies for the next regulatory period 2020-25

Forum 5 – Building Blocks (25th June 2018)

The Forum provided an opportunity for to engage Working Group members on:

  • An overview of the building block approach to forecasting the cost of supply
  • An explanation of the Regulated Asset Base (RAB) and drivers of the current RAB size
  • Proposed changes in the treatment of Information and Communication Technology (ICT)
  • The new lease accounting standard and an overview of the Cost Allocation Method (CAM)
  • Depreciation, insurance and operating expenditure methodology
  • Financing costs and notional taxation incentive schemes for the current regulatory period and outline of those that are expected in relation to the 2020-25 regulatory period

Forum 4 – Expenditure Forecasts (11th June 2018)

The Forum provided an opportunity to engage Working Group members on expenditure forecasts for operating expenditure (Opex) and capital expenditure (Capex). Topics included:

  • Energy Queensland merger savings
  • The network investment methodology and approach
  • Service performance in relation to safety, feeder type, new connections and peak demand
  • Opex forecasting and expenditure forecasts for both networks across the 2020-2025 regulatory period
  • Non-system capex proposals, current trends and drivers specifically in relation to the areas of ICT, property and fleet
  • An overview of capex including augmentation capital expenditure (augex), customer connections capital expenditure (conex), asset replacement capex (repex) and capitalised overheads

Forum 3 – The Network of the Future and Non-Network Alternatives (3rd May 2018)

The Forum provided an opportunity to engage Working Group members on:

  • The strategic approach for future network investment in transitioning to an intelligent grid
  • The Regulatory Investment Test for Distribution (RiT-D)
  • Demand Management investment initiatives, future plans and opportunities regarding demand side management

Forum 2 – Tariff Reform (5th April 2018)

The Forum provided an opportunity to engage Working Group members on:

  • The Tariff Structure Statement - purpose, principles, framework and approach
  • The future of tariffs in Queensland and the drivers for tariff reform
  • Different tariff structures to be considered
  • Review of the Ergon Energy Network and Energex draft Network Tariffs 2020-25 Tariff Structure Statement Customer Consultation Paper (April 2018)

Forum 1 - Introduction to the Regulatory Proposal and Tariff Structure Statement (6th March 2018)

The Forum provided an opportunity to provide Working Group members with:

  • An update on both Ergon Energy Network and Energex’s performance in the current regulatory period and the challenges faced for the next regulatory period 2020-25
  • An overview of the Regulatory Proposal and Tariff Structure Statement (TSS) process
  • An overview of the engagement approach and timeline, including key topics and themes to be consulted
  • An update on our customer research and insights to date and the forthcoming research program to inform business decisions around the Regulatory Proposal and Tariff Structure Statement.


Regulatory Proposal (RP) and Tariff Structure Statement (TSS) Working Group Members

  • Dean Lombard, Alternative Technology Association
  • Dale Hollis, Bundaberg Irrigators
  • Warren Males, Canegrowers
  • Mary Carroll, Capricorn Enterprise
  • Steven Gorasevski, Chamber of Commerce and Industry
  • Pamela Bessette, City of Gold Coast Council
  • Neil Horrocks, CitySmart
  • Maryanne Coffey, Clean Energy Council
  • Robyn Robinson, COTA (Council of the Aging) Queensland
  • Andrew Splatt, Cotton Australia
  • Sabiene Heindl, Energy Consumers Australia (ECA)
  • Darlene Irvine, FNQ Regional Organisation of Councils
  • Michael Fullelove, Local Government Association QLD (LGAQ)
  • Scott Britton, Local Government Association QLD (LGAQ)
  • Anthony King, Master Electricians Australia
  • Peter Lamont, National Electrical and Communications Association (NECA)
  • David Warner, National Seniors Association
  • Anne Nalder, Small Business Association of Australia
  • Andrew Barger, QLD Resources Council
  • Rose McGrath, Queensland Council of Social Service (QCOSS)
  • Luke Read, Queensland Council of Social Service (QCOSS)
  • Georgina Davis, Queensland Farmers Federation
  • Bruce Cooke, Solar Citizens Association
  • Judene Andrews, Uniting Care QLD
  • Martin Zaltron, Urban Development Institute of Australia (UDIA)

Edge of Grid Webinar

Below is a recording of the Edge of Grid Webinar that took place on Monday 4 June 2018.