❓ Mr. Nalder asks about the cost breakdown of residential electricity and the percentage attributed to tariff equalisation. The answer provides a detailed cost stack and the contribution of tariff equalisation.
AnsweredQoN 6117Legislative Assembly
QuestionView source ↗
(1) What is the
breakdown of the cost stack for metropolitan residential electricity customers? (2) What is the current
percentage of the metropolitan residential electricity cost stack for tariff
equalisation?
breakdown of the cost stack for metropolitan residential electricity customers? (2) What is the current
percentage of the metropolitan residential electricity cost stack for tariff
equalisation?
AnswerView source ↗
Answered
16 June 2020
Responded by
Minister for Energy
Response time
8 days
1. The residential (A1) electricity tariff cost information in Table 1 below is based on Department of Treasury (WA) modelling of the efficient supply costs for an integrated generator-retailer servicing the State’s main electricity grid. Regulated retail tariffs paid by residential customers are about 7.5% below the total cost of supply.
Table 1: Residential Electricity Tariff Cost Stack
(cents per Kilowatt Hour (c/KWh))
Cost Category
c/KWh
% share
Network Charges
16.0577
45%
Capacity Charges (including large-scale renewable energy obligations)
8.9166
25%
Average Wholesale Energy Costs
7.0257
20%
Net Retail Operating Costs
4.5%
Retail Margin
3.5%
Market Fees and Ancillary Services
0.5338
1%
Small-scale Renewable Energy Obligations
0.4803
1%
Total
35.7945
100%
2. Department of Treasury modelling indicates that the contribution of Tariff Equalisation Contribution charges to the residential electricity supply cost is 1.65 cents per kilowatt hour or 4.6% of the total cost of supply.
Table 1: Residential Electricity Tariff Cost Stack
(cents per Kilowatt Hour (c/KWh))
Cost Category
c/KWh
% share
Network Charges
16.0577
45%
Capacity Charges (including large-scale renewable energy obligations)
8.9166
25%
Average Wholesale Energy Costs
7.0257
20%
Net Retail Operating Costs
4.5%
Retail Margin
3.5%
Market Fees and Ancillary Services
0.5338
1%
Small-scale Renewable Energy Obligations
0.4803
1%
Total
35.7945
100%
2. Department of Treasury modelling indicates that the contribution of Tariff Equalisation Contribution charges to the residential electricity supply cost is 1.65 cents per kilowatt hour or 4.6% of the total cost of supply.
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