FAQs - Electricity Standing Offer Price Reset Effective 1 July 2017

Q. What has changed with electricity pricing for this year?

A. The Tasmanian Government announced a cap on electricity price rises for 2017/2018.

For the average residential customer, this has been reflected as a price increase of approx. 2% (or less than $1 per week).

For the average small business customer, they will experience a decrease of approx. 4% (a saving of around $100 per year).

Q. Is GST included in the pricing?

A. Yes, all electricity rates and charges include the Australian Government's GST.

In accordance with Australian Tax Office rules, Aurora Energy applies GST to the Feed-in-Tariff rate for GST registered entities, however GST is not included in the Feed-in-Tariff rate for residential customers.

Q. Why did the residential electricity price go up and small business prices go down?

A. Prior to this year, the charges for costs of supplying electricity was applied uniformly across all customers, regardless of the type of customer and how much it actually costs to provide them with electricity.

This year we have started to correct this approach, so that all customers pay equitable prices for their electricity. By properly reflecting the actual costs of supply, our prices will help customers make better, more informed choices about when and how they use electricity - giving them more control over what they pay.

Our revised method of calculating tariff pricing has been assessed by the Tasmanian Economic Regulator, and approved as being in the best interests of all our customers.

Q. What does an “average” customer mean?

A. The majority of Aurora Energy’s residential customers are on Tariff 31 (Light and power) and Tariff 41 (Space heating and hot water) and the most common small business tariff is Tariff 22.

Q. Why have the prices increased for residential customers?

A. The main driver for this increase relates to an increase in generation costs.

Q. Does the price increase apply to Aurora PAY AS YOU GO?

A. The price increase for the average residential customer of approx. 2% will also be applied at the same rate to Aurora PAY AS YOU GO (APAYG) rates.

As per the terms and conditions of the product, Aurora Energy is required to publish APAYG rates 28 days prior to them becoming effective. The date of the published price increase is on Thursday 29 June 2017, with APAYG prices taking effect from 29 July 2017.

Q. How do I change my APAYG meter to standard metering and what it will cost?

A. Under the Terms and Conditions of Aurora PAY AS YOU GO (APAYG) it is FREE to exchange your APAYG meter to a standard meter from 29 June 2017 to 23 August 2017. Request your free exchange.

Q. What will happen to pricing next year?

A. At this stage, it is uncertain what future pricing will look like as there are many factors that can influence prices.

However, prices will continue to be set by the independent Tasmanian Economic Regulator to ensure they are in the best interests of customers.

Q. Do I still get a concession?

A: Absolutely. Concessions will rise by 2 per cent, equal to the price rises that apply from 1 July 2017.

Q. Does the price increase apply to Aurora Energy’s gas tariffs?

A. Aurora Energy’s gas tariffs are set independently of Aurora Energy’s electricity tariffs and remain unchanged from their current rates set from 1 January 2017.

Q. Does the tariff price increase also apply to the Feed-in Tariff rate (e.g. solar)?

A. The Feed-in-Tariff (FiT) rate is set by the Tasmanian Economic Regulator independently of the electricity standing offer prices.

The Tasmanian Economic Regulator announced a FiT rate of 8.929 cents per KWh (GST exclusive) to take effect from 1 July 2017 to 30 June 2018. For more information, please refer to the Tasmanian Economic Regulator website http://www.economicregulator.tas.gov.au/

Q. What about if I am on a Legacy Feed-In Tariff?

A. Customers on the Legacy Feed-in Tariff will continue to receive their current rates until 31 December 2018, subject to meeting all ongoing eligibility requirements.

Q. Are there changes to the Concession for pensioners or eligible health care cardholders?

A. Yes, the Annual Electricity Concession for eligible pensioners changes, effective 1 July 2017. Concessions are set by the Tasmanian Government and are available to view here, or on the State Government website, www.concessions.tas.gov.au

Q. Are there changes to life support and medical cooling or heating customers?

A. Yes, the concession applicable to customers on life support and for medical cooling or heating customers changed effective from 1 July 2017.

Life support and the medical cooling or heating discounts are set by the Tasmanian Government, and information and application forms are available here or on the State Government website, www.concessions.tas.gov.au

Q. Have the network charges increased?

A. Network charges are set by the network distributor and approved by the Australian Energy Regulator.

More information about Network charges is available on the TasNetworks website (www.tasnetworks.com.au).

Q. How can I lodge a complaint about Network charges?

A. If a customer is unhappy with the network charge, they can lodge a complaint with Aurora Energy through our usual internal complaints process, contact TasNetworks, or contact the Ombudsman.

If you have any other questions, please contact us