Electricity cost breakdown

This graph explains what makes up the cost of electricity price for regulated tariffs in 2014.

Regulated tariff electricity prices are set by the Office of the Tasmanian Economic Regulator (OTTER).

32.5% Generation

Aurora buys electricity from Hydro Tasmania, with contributions from our Tamar Valley Power Station and some imported energy from the mainland. Government regulations set the process that the Tasmanian Economic Regulator uses to determine the price that Aurora buys electricity.

3.0% Renewable Energy Certificates

This charge represents the cost to Aurora of complying with its obligations under the Australian Government's Small-scale Renewable Energy Scheme (SRES) and Large-scale Renewable Energy Target (LRET). The SRES and LRET are part of the Renewable Energy Target (RET). The RET is designed to deliver on the Government's commitment that the equivalent of 20% of Australia's electricity will come from renewable sources by 2020.

0.5% Market charges

These charges are the cost to participate in the National Electricity Market. The fees are paid to the Australian Energy Market Operator (AEMO) on your behalf by Aurora.

15.0% Transmission

High voltage transmission is the responsibility of Transend. Electricity is converted into lower voltage from where it is generated through transformers to Aurora's distribution, or 'pole and wires', network. The Australian Energy Regulator sets the prices that customers pay to use the transmission network and ensures compliance within the National Electricity Law and Rules.

39.0% Distribution

This is the cost for Aurora's Distribution Business to operate and maintain more than 22,000km of overhead wire and underground cable that connects the transmission network to customer premises. The Australian Energy Regulator sets the prices that customers pay to use the distribution network and ensures compliance within the National Electricity Law and Rules.

10.0% Retail

The Tasmanian Economic Regulator determines the maximum amount that you should pay for retail services including billing, account management, call centre costs and a retail margin. The retail margin compensates Aurora's retail arm for its investment in the business and for the risks it takes in providing electricity services to you.