all about network tariffs
Who do network tariffs apply to?
Network tariffs are directly charged to the customer's retailer.
How are network tariffs incorporated into a customer's bill?
There are two main components to a customer's bill. They are:- Retail component: To recover the purchase cost of energy from the generator.
- Network tariff component: To recover the network costs (both distribution and transmission) of delivering that energy. This is a regulated charge levied by the distribution business that owns the distribution assets to which the customer is connected, and by the transmission company (SP AusNet) that owns the transmission assets.
What are network tariffs?
Network tariffs are regulated by the Australian Energy Regulator (AER) and represent the cost component referred to as "Network Use Of System" (NUOS). They comprise two principal components: Standard Control / Distribution Use of System (DUOS) and the Transmission Use of System (TUOS). ie. NUOS = DUOS + TUOS.The DUOS component covers the operations and maintenance cost and investment return on United Energy's distribution network assets. These assets include zone substations, distribution lines and distribution transformers.
The TUOS component covers the use of transmission power lines/towers and terminal stations (owned by SP AusNet).
There are two main types of network customer groups within United Energy territory. These are:
Low voltage (LV) customers:
These customers are connected
to a supply voltage less than 1000 Volts. Within this high level customer
grouping there are several network tariff groupings.
High voltage (HV) customers:
These customers are
connected to a supply voltage between 1,000 and 22,000 volts.
