Regulatory Archive


Electricity Distribution Price Review 2006

Under the terms of United Energy Distribution's Licence, United Energy Distribution charges network tariffs to all customers in its distribution region. Government regulations state that the price path for distribution tariffs is set every five years. The original price path was put in place by the Victorian Government in 1995 as part of the privatisation process. The first review setting prices commencing 1 January 2001 was carried out during 1999-2000. Information relating to this Review can be found under Electricity Distribution Price Review 2001. The second review process is completed and prices for the period 1 January 2006 to 31 December 2010 have been determined.

United Energy Distribution submitted it's offering of pricing and services on 21 October 2004, in accordance with the timelines outlined by the Essential Services Commission. This submission provided details of United Energy Distribution's price-service package for the regulatory period 1 January 2006 to 31 December 2010, including detailed information on future service level benchmarks and proposed reductions in distribution charges.

In December 2004, following the five Victorian electricity distribution businesses submission of price-service proposals to the Commission for the 2006-10 regulatory period, the ESC issued an Issues Paper. The purpose of this Issues Paper was to raise several major issues arising from the Commission's initial analysis of the distributors' price-service proposal that warrant public examination, comment and further analysis.

The Essential Services Commission released their Draft Decision on 22 June 2005. It is available in the Draft Decision section of their website.

United Energy Distribution submitted a series of documents in response to the Draft Decision on 19 August 2005. They are as follows:

Important dates for the consultation process were:

  1. Essential Services Commission release of summary paper detailing distributors proposals 15 November 2004
  2. Draft Decision June 2005*
  3. Final Decision October 2005*
* Public discussions and workshops were held between these dates

The Essential Services Commission released their Final Decision on 19 October 2005. All papers released at this time plus Errata pages published 23 November 2005 are available on their website.

The price changes determined by the ESC were a real price reduction of 14.7% for 2006 and 2.5% for the period 2007-10 inclusive.

United Energy Distribution appealed the final decision on two grounds: the allowed level of operating and maintenance costs, and the S-factor incentive mechanism. UED subsequently withdrew the appeal against the S-Factor.

On 17 February 2006, the Appeal Panel found in favour of the Essential Services Commission and therefore the Final decision remains in force.

The price controls from the Final Decision became effective 1 January 2006.

On 26 October 2006, as a result of the outcome of the appeals, the ESC made an amendment to the Electricity Distribution Price Review 2006-10 Determination. The Determination was re-issued by the ESC. Follow the following links to view those documents:


Electricity Distribution Price Review 2001

Under the terms of United Energy's Distribution Licence, United Energy Distribution charges network tariffs to all customers in its distribution region. Government regulations state that the price path for distribution tariffs is set every Five years. The original price path was put in place by the Victorian Government in 1995 as part of the privatisation process.

Subsequently, during 1998 - 2000 a price review was conducted by the Office of the Regulator-General (now known as the Essential Services Commission). New prices set in the review became effective 1 January 2001.

This review has important implications for United Energy Distribution and our shareholders. We stated our case strongly to Government, Members of Parliament, and the public at large.

The Price Review Process took place over a number of years, and passed through five main stages. Significant amounts of documentation were produced during each stage. The five stages and related documents can be reached through the links below.

Every five years the Essential Services Commission (ESC) reviews the prices that United Energy Distribution can charge to customers in its distribution region. This price path for 2001-2005 expired on 31 December 2005. After an extensive consultation period with the ESC, the current price path for 2006-2010 has been determined. Information on this process can be found under Electricity Distribution Price Review 2006.

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