Renewable Energy Dis-Incentives - Solar-Tax.???

Financial support for wind and solar power in Australia - rebates, grants and feed in tariffs - can be a nightmare in navigating all the rules and regulations. Ask your questions and view related information here.

Renewable Energy Dis-Incentives - Solar-Tax.???

Postby Tracker » Wed Nov 04, 2015 1:34 pm

Got an email about this .. ummm ... Discussion paper.. :idea:

http://www.haveyoursay.nsw.gov.au/assets/Uploads/NETWORKS-NSW-Issues-Paper.pdf

3.1.2 Network tariffs for customers who generate electricity

Currently the networks provide a single service allowing customers to receive electricity for consumption and generate electricity to export to the grid. All customers connected to the distribution network consume and generate electricity if they choose to invest in generating assets.
A customers’ connection to the network is based on their expected capacity requirements. This capacity could be a maximum capacity to transfer electricity into the grid or take electricity from the grid. Enhancing this capacity drives our costs up, particularly when we need to invest in our network to facilitate customers’ peak demands.
Our network tariffs are based on the combined costs of providing the capacity for this single service with no differentiation in our charges to reflect any difference in costs imposed on the network between customers who generate electricity and those that do not.
We are interested in stakeholders’ views on whether they believe there should be separate network charges for customers who have the ability to use power from the network and also have the ability to feed surplus power back into the grid.
An export generation tariff for network usage could be technology neutral, and could be charged to residential or small business customers who export electricity to the grid to reflect the costs imposed
on the network. This could include householders with photovoltaic solar panels, battery storage, or
electric vehicles.
Should we consider a tariff and/or charge for recovery of network costs for customers that export electricity
to the grid for other customers’ consumption? Should a charge be technology neutral?

3.1.3 Declining block tariff

Today, declining block tariffs are used as the primary tariff across our three businesses. With this tariff, the first block of energy costs more than electricity used in subsequent blocks of electricity.
This tariff has been implemented to provide customers with predictable, stable pricing, and to avoid bill shock. Because our regulator caps the total revenue we can collect from customers each year, it is in consumers’ best interests to maintain utilisation of the network to maintain stable prices. Under capped revenue regulation, increasing electricity consumption reduces network charges and declining network consumption increases network charges.
With an inclining block tariff, the first block of energy used attracts a lower charge, and there are higher costs when more energy is used in subsequent blocks. Without the necessary ‘smart’ meters in NSW, most customers do not know when these increases occur.
Given the predominance of basic meters across the networks and the Rule requirement for efficient pricing, how supportive are you of declining block tariffs?
Are declining block tariffs more effective in preventing “bill shock” while providing flexibility to reduce bills compared to other alternatives?

3.1.4 Transitioning to tariffs that promote more efficient outcomes

New regulations require that electricity distributors must consider the customer impact of changes in tariffs. Distributors may vary tariffs, including from those that comply with “efficient” pricing principles after a reasonable period of transition.
We are interested in customers’ views about what is an appropriate transition period, if the obligation to move to more efficient tariffs (based on LMRCS and the application of residual costs to minimise pricing distortions) results in changes to existing tariffs. Customers should be aware that an immediate transition may create “winners” and “losers” in that some customers’ bills would decrease and others would increase.
A staged introduction of declining block tariffs commenced in July 2014 and continued in July 2015.
If transitioning to more efficient tariffs over time results in “winners and losers”, over what period should
any transition occur?
Would customers support a cap on necessary increases limited to no more than CPI as a way of lessening any price shock to customers?

3.1.5 Regional pricing

Different geographic areas, climatic regions, transmission connection points or areas of network congestion in NSW, could attract location-specific tariffs for residential customers to address local issues.
A location-specific tariff could be used to reflect higher or lower costs or big swings in low and high demand in a particular area. These types of tariffs could result in neighbours paying different rates for their electricity.
Would location-based tariffs for in the same distribution network areas be acceptable?
What situations would they be applied?
Would customers be prepared to pay for the higher administration cost of this structure?

3.1.6 Demand tariff
Demand tariffs are commonplace for large businesses, and allow actual demand to be reflected in the price the business pays for their use of our network capacity.
The highest demand electricity meter reading for a particular time (usually monthly) is used to calculate the electricity bill. This is because that point of demand tells us how much network capacity we need to reliably service that customer, and this in turn helps reflect our investment costs.
We are interested in customer and stakeholder views on whether demand tariffs may also be appropriate
for residential and small business customers.
To make this tariff available, properties would need to be fitted with an interval or smart meter. There would also need to be changes in billing systems, resulting in additional costs.
Based on forecasts of relatively flat demand for growth in peak electricity consumption in NSW, and a view that a demand tariff may not lead to less money being invested to maintain the NSW electricity distribution network, we are interested in customers’ feedback on whether future residential tariffs should include a demand charge component.
Should customers be charged for service based on their usage at peak times? How could a demand charge be structured?
Who should pay for the costs of metering if an interval or smart meter is required?
With loads flattening in NSW, will a demand tariff likely lead to lower future network costs?
If there is interest in a demand tariff, over what period of time should the businesses transition to this tariff structure?

3.1.7 Time of use tariff

Ausgrid, Endeavour Energy and Essential Energy offer residential customers a declining block tariff as the primary network tariff, with a choice to “opt in” to a voluntary time of use tariff. There has been a low take up and indeed, recent interest in, time of use tariffs by customers in many parts of NSW.
What do customers think of time of use tariffs?
Why do you think the take up of this tariff in NSW is so low?
Are there other voluntary tariffs of interest to customers?

3.1.8 Food and fibre tariff

Some primary producers in NSW have proposed a ‘food and fibre’ tariff for agricultural businesses that typically only place demand on the electricity network for short periods during the year. A purely efficient tariff for these customers based on demand is likely to result in high charges when demand occurs at peak times.
We are interested in customer views on whether a specific tariff for these customer groups is appropriate, and if so, how the tariff should be structured.
What do you think of a specific tariff for these groups?
Should such a tariff be set at an efficient level if it means higher charges at peak times?

3.1.9 Ancillary network services, setering services & street lighting

The Australian Energy Regulator has previously set price levels and structures for ancillary network services for metering services and street lighting.
However, we remain interested in hearing community views about these services and pricing, including feedback from local government about street lighting pricing structures.
Insights from our stakeholder engagement around 2017 – 2019 tariff structures will help inform our future pricing strategies, and approach to how we consider tariffs for the next regulatory period.
What are the main issues you think we need to consider about Ancillary Network Service charges, metering
charges and street lighting pricing structures?


Dear solar customer,

Electricity networks in NSW are sounding out stakeholders about a possible new charge to be levied against solar households who generate power for the grid.

You can read about it here, on p21:Â

http://www.haveyoursay.nsw.gov.au/asset ... -Paper.pdfÂ

We've had some media interest in the proposal and we are looking for members to be interviewed for a TV news story.
If you've gone solar and you're happy to speak to media about how you feel about this issue, please reply to me at this address with your postcode and best contact details.
Many thanks,
Joel @ One Big Switch
Retired Engineer and keen PV experimenter - Always ready to learn and share.
2 x CMS2000 (fan cooled) GCI and SE 170W panels
1.7kW First Solar/Outback Island circuit - Peak Replacement Power
Governments won't save the world :-) They will just TAX it :-(
Tracker
Solar Crusader
Solar Crusader
 
Posts: 5067
Joined: Wed Sep 23, 2009 5:54 am
Location: SYDNEY --- EA - Network, Retailer - EA

Re: Renewable Energy Dis-Incentives - Solar-Tax.???

Postby jules » Wed Nov 04, 2015 3:37 pm

A customers’ connection to the network is based on their expected capacity requirements. This capacity could be a maximum capacity to transfer electricity into the grid or take electricity from the grid. Enhancing this capacity drives our costs up, particularly when we need to invest in our network to facilitate customers’ peak demands.
Our network tariffs are based on the combined costs of providing the capacity for this single service with no differentiation in our charges to reflect any difference in costs imposed on the network between customers who generate electricity and those that do not.


Well I don't understand the workings of power supply well enough to evaluate what's being said here but there do seem to be some internal contradictions. If costs are driven up "particularly when we need to invest in our network to facilitate customers’ peak demands." surely those same costs are driven down when locally generated solar power reduces the need for more poles and wires, particularly for that notorious peak period time when air-con runs amok?

What is the real cost to networks of the input of solar power to the grid? Does it require any extra infrastructure [or could it have actually stymied the rather profitable (due to government incentives) process of expanding the "poles and wires" where they weren't really needed]?

To what extent is this "problem" for the networks merely a misjudgement on their part because they just aren't getting the income from houses feeding solar to the grid. Is this the equivalent of charging a customer in a shop for a product they choose not to buy? Could this practice spread :D ?

Most importantly, this is a nominally government "discussion paper" but it looks as though it was written by a network representative and as such it seems very loose, very poorly thought out and lacking in coherence.

Who represents the solar feed-in community?
Primary system: .8KW Trina panels; Plasmatronics PL40; 1,000Ah VRLA 12X2V battery bank; 1.7KW Selectronic inverter

Veteran system, semi retired: 6 X 55W Solarex 12V panels; Fangpusun CC; 6 X 2V, 35 year old 550Ah lead acid flooded cell batteries.
jules
Solar Crusader
Solar Crusader
 
Posts: 264
Joined: Fri Aug 17, 2012 1:32 pm
Location: Port Macquarie, NSW

Re: Renewable Energy Dis-Incentives - Solar-Tax.???

Postby Tracker » Wed Nov 04, 2015 5:46 pm

jules wrote:Well I don't understand the workings of power supply well enough to evaluate what's being said here but there do seem to be some internal contradictions.


It is a nonsense proposition IMHO..

the average home has a single 100A connection to the GRID..

That is either 100A Import or Export and we know that it is impossible to have 100A export as that would be 24kW and the typical PV limit.. is it 5kW of PV (I'm not up with it any more)
and even then..
If you had a massive load running (say 10kW ) and you were exporting 5kW, then the power within the cable is less.. ie. 5kW or only 20A.. So Solar Power must generally reduce the size NEED of the grid connection..

So HOW can connecting solar, impose a demand for higher Grid-Connection costs..
PV will always REDUCE the need for service main upgrade..

IMHO - most of the stuff within the presentation, is at best a concoction, designed to snow-job, non technical adjudicators..

Our network tariffs are based on the combined costs of providing the capacity for this single service with no differentiation in our charges to reflect any difference in costs imposed on the network between customers who generate electricity and those that do not.


There is no real cost difference between servicing a normal customer and a PV-Generator Customer, other than the meter, - WHICH I PAID FOR.. :idea:
Reading may cost 30seconds more than next door..

The bottom line is that the retailers are hurting because THEY purchased the rights to SELL ELECTRICITY, and they are finding their total sales being reduced by PV Generation, and now they are trying to bluff the likes of IPART into raising costs on fallacious grounds.. :evil:
..
.
Retired Engineer and keen PV experimenter - Always ready to learn and share.
2 x CMS2000 (fan cooled) GCI and SE 170W panels
1.7kW First Solar/Outback Island circuit - Peak Replacement Power
Governments won't save the world :-) They will just TAX it :-(
Tracker
Solar Crusader
Solar Crusader
 
Posts: 5067
Joined: Wed Sep 23, 2009 5:54 am
Location: SYDNEY --- EA - Network, Retailer - EA

Re: Renewable Energy Dis-Incentives - Solar-Tax.???

Postby Morricol » Thu Dec 17, 2015 9:36 am

Here in south east Queensland Origin has just informed us that as Solar customers we'll be charged an extra 6.75 cents per day. I've copied an excerpt from a letter I received from Origin recently, below.

"Hello Customer
Your future bills will show a solar meter charge

From 1 January 2016, your electricity charges will include a solar meter charge of 6.767c/day (excluding GST). We’ve made this change after the Australian Energy Regulator set distributor fees to include separate solar meter charges. Previously, this charge was spread across all electricity customers, but will now be passed through directly to customers with solar meters. This solar meter charge will appear as a separate item on your bills from this date. Have questions about these changes?

You’ll find more on the solar meter charge at originenergy.com.au/solarmetercharge. Or, give us a call on 13 24 61 between 7am to 9pm weekdays, or 9am to 5pm Saturdays.

Rebekah O'Flaherty
General Manager, Retail"
Morricol
Solar Supporter
Solar Supporter
 
Posts: 7
Joined: Wed Feb 03, 2010 9:17 pm
Location: Laidley, Queensland

Re: Renewable Energy Dis-Incentives - Solar-Tax.???

Postby bpratt » Thu Dec 17, 2015 10:04 am

So the $1.28 per day service charge isn't enough cream for them, that they choose to increase it another 6.767c because I have solar PV on my house ?

So why is the service charge to meter my tariff 33 only 3.19c per day ?

Why is the same meter costing twice the amount for solar as it does for off peak tariff 33 ?

So it looks like I'll be paying $1.37994 per day just for the privilege of electricity being available to use.

On the average quarterly bill, that'll be around $124 I'm paying for a meter to sit on the wall, so that they can charge me per kw/h.

This is getting ridiculous... I don't know how the poor old age pensioner living alone can pay just shy of $500 per year just to have the power connected, and then they have to pay for what they use.

It's a scam I tell ya ! :)
Kaco 6600
26 x Trina Honey 250w panels. (wish I could work out how to upload to pvoutput.org)

New house build :-
http://bandlnewhomebuild.blogspot.com

My weather station :-
http://jimboombaweather.com
bpratt
Solar Crusader
Solar Crusader
 
Posts: 938
Joined: Wed Oct 14, 2009 11:09 am
Location: Jimboomba, Queensland - Energex and Origin


Return to Renewable Energy Rebates And Incentives

Who is online

Users browsing this forum: No registered users and 2 guests

new solar power specials