AER hands down 5-year price determination to Ergon

Posted October 29, 2015

Screen Shot 2015-10-29 at 1.10.08 pm

An illustration of past, proposed and now future prices

 

The Australian Energy Regulator (AER) has today released its final price determination for Ergon Energy for the next five years.

The decision allows Ergon to recover $6.3 billion between 2015 and 2020 - $1.5 billion less than originally proposed.

Townsville Enterprise Limited (TEL) General Manager Economic Development, Tracey Lines said the decision was a balanced one that would have a stabilising effect on electricity prices.

“There will be parties that say this is not enough and there will be parties that say this is too much,” Ms Lines said. “I think that there is much more to be done in terms of improving the system, framework and laws (State and Federal), facilitating private investment and technology uptake, but given the existing framework, it is a positive step.”

The Queensland Premier has stated that Ergon will not be able to challenge the ruling.

“This is a very bold and positive position to take indicating the Government is supporting stabilised pricing,” Ms Lines said.

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