SVDP NSW Tariff Tracking July13 Update Report

NSW Energy Prices July 2012 - July 2013

An update report on the NSW Tariff-Tracking Project

May Mauseth Johnston August 2013 Disclaimer* The$energy$offers,$tariffs$and$bill$calculations$presented$in$this$report$and$associated$ workbooks$should$be$used$as$a$general$guide$only$and$should$not$be$relied$upon.$ The$ workbooks$ are$ not$ an$ appropriate$ substitute$ for$ obtaining$ an$ offer$ from$ an$ energy$retailer.$$The$information$presented$in$this$report$and$the$workbooks$is$not$ provided$as$financial$advice.$While$we$have$taken$great$care$to$ensure$accuracy$of$ the$information$provided$in$this$report$and$the$workbooks,$they$are$suitable$for$use$ only$as$a$research$and$advocacy$tool.$We$do$not$accept$any$legal$responsibility$for$ errors$or$inaccuracies.$The$St$Vincent$de$Paul$Society$and$Alviss$Consulting$Pty$Ltd$do$ not$accept$liability$for$any$action$taken$based$on$the$information$provided$in$this$ report$or$the$associated$workbooks$or$for$any$loss,$economic$or$otherwise,$suffered$ as$ a$ result$ of$ reliance$ on$ the$ information$ presented.$ If$ you$ would$ like$ to$ obtain$ information$ about$ energy$ offers$ available$ to$ you$ as$ a$ customer,$ go$ to$ Australian$ Energy$ Regulator’s$ “Energy$ Made$ Easy”$ website$ or$ contact$ the$ energy$ retailers$ directly.$ $ $ $ $ New$South$Wales$Energy$Prices$July$2012$–$July$2013$ An$Update$report$on$the$NSW$TariffQTracking$Project$ by$May$Mauseth$Johnston$$$ $ May*Mauseth*Johnston,*August*2013* Alviss*Consulting*Pty*Ltd* ABN$43147408624$ $$ $ $ ©*St*Vincent*de*Paul*Society*and*Alviss*Consulting*Pty*Ltd* * This$work$is$copyright.$Apart$from$any$use$permitted$under$the$Copyright$Act$1968$ (Ctw),$no$parts$may$be$adapted,$reproduced,$copied,$stored,$distributed,$published$ or$put$to$commercial$use$without$prior$written$permission$from$the$St$Vincent$de$ Paul$Society.$$$ $ $ $ $ $ $ Contact:*Gavin*Dufty* Manager$Policy$and$Research,$Victoria$ Phone:$(03)$98955816/04$3935$7129$* $ www.vinnies.org.au/energy$$

1 $ Acknowledgements* This$ project$ was$ funded$ by$ a$ research$ grant$ from$ the$ Consumer$ Advocacy$ Panel$ (www.advocacypanel.com.au)$ as$ part$ of$ its$ grants$ process$ for$ consumer$ advocacy$ projects$and$research$projects$for$the$benefit$of$consumers$of$electricity$and$natural$ gas.$ $ The$views$expressed$in$this$document$do$not$necessarily$reflect$the$views$of$the$ Consumer$Advocacy$Panel$or$the$Australian$Energy$Market$Commission.$ * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

2 Table*of*Contents* * Acknowledgements* 2* The*NSW*TariffKTracking*Project:*purpose*and*outputs* 4* * * 1.*Energy*price*changes*from*July*2012*to*July*2013* 6* * * 2.*Regulated*vs.*market*offers*July*2013* 13* 2.1$Regulated$electricity$vs.$market$offers$July$2013$$ 13$ 2.2$Regulated$gas$vs.$market$offers$July$2013$ 22$ * $ 3.*Total*cost*of*energy*by*area* 25* 3.1$Inner$Sydney,$Northern$Sydney,$Swansea,$Newcastle,$Maitland,$Cessnock$ 25$ Singleton$and$Upper$Hunter$ 3.2$ Western$ Sydney,$ Wollongong,$ Blue$ Mountains,$ Lithgow,$ Kandos,$ Moss$ 26$ Vale,$Nowra,$Ulladulla$ 3.3$Rural$and$Regional$NSW$ 27$ * * $ * * * * * * * * * * * * * * * * * * * * * * * * * * * *

3 The*NSW*TariffKTracking*Project:*Purpose*and*outputs* $ Under$retail$price$regulation$arrangements,$tariff$tracking$and$tariff$analysis$are$not$ usually$prioritised$activities$amongst$advocates$and$consumer$representatives.$$In$a$ deregulated$ environment,$ however,$ it$ will$ become$ increasingly$ evident$ that$ advocates,$ as$ well$ as$ consumers$ themselves,$ need$ improved$ awareness$ and$ understanding$of$changing$tariff$offers$–$both$in$terms$of$changes$to$price$as$well$as$ changes$ to$ tariff$ shapes.$ $ The$ Australian$ Energy$ Market$ Commission$ (AEMC)$ is$ currently$undertaking$a$review$of$the$effectiveness$of$competition$in$NSW$and$its$ Draft$Report$stated$that:$ $ “Based$on$the$available$evidence,$the$Commission$considers$that$the$NSW$ retail$electricity$market$for$small$customers$is$competitive.$However,$the$ effectiveness$of$competition$could$be$further$enhanced$by$implementing$ measures$to$assist$customers$to$better$understand$their$electricity$ consumption$and$options$for$changing$tariffs.”1$$$ $ The$AEMC$also$believes$that$competition$in$the$gas$retail$market$is$effective,$ although$it$noted$that$there$appears$to$be$some$barriers$to$entry$for$new$retailers$ and$that$there$are$limited$signs$of$independent$rivalry.2$However,$the$AEMC$ concluded$that:$ $ “[T]hese$factors$are$balanced$by$customers'$greater$ability$to$switch$away$ from$gas$to$electricity,$which$provides$pressure$to$keep$gas$retailers'$prices$ and$service$quality$similar$to$outcomes$expected$in$a$competitive$market.”3$$ $ If$the$AEMC’s$final$recommendation$is$the$removal$of$retail$price$regulation$and$the$ NSW$Government$accepts$this,$the$NSW$Tariff$–Tracking$tool$will$allow$consumer$ advocates$to$undertake$‘before$and$after’$comparisons$and$monitor$potential$ impacts$of$deregulation$on$NSW$consumers,$as$well$as$energy$affordability$and$ market$developments$more$broadly.$$$ $ This$project$has$tracked$electricity$and$gas$tariffs$in$NSW$from$July$2009$to$July$2013,$ and$developed$a$spreadsheetQbased$tool$that$allows$consumer$advocates$to$build$on$ the$initial$analysis$and$continue$to$track$changes$as$they$occur.4$The$first$report$for$ the$NSW$TariffQTracking$project$was$published$in$August$2011$and$this$is$the$second$ upQdate$report$focusing$on$price$changes$that$have$occurred$over$the$last$year.$ $ We$have$developed$four$workbooks$that$allow$the$user$to$enter$consumption$levels$ and$analyse$household$bills$for$NSW$gas$and$electricity$offers.$$

1$AEMC,$Review$of$Competition$in$the$Retail$Electricity$and$Natural$Gas$Markets$in$New$ South$Wales,$Draft$Report,$May$2013,$p$64$ 2$Ibid,$p$85$ 3$Ibid$ 4$The$regulated$electricity$offers$workbook$also$contains$the$2008$rates!

4 Workbook$1:$Regulated$electricity$offers$July$2008QJuly$2013$ Workbook$2:$Regulated$gas$offers$July$2009QJuly$2013$ Workbook$3:$Electricity$market$offers$July$2011,$2012$and$20135$ Workbook$4:$Gas$market$offers$July$2011,$2012$and$2013$ $ Previous$reports$were:$ $ • New$South$Wales$Energy$Prices$July$2009$–$July$2011,$A$Report$from$the$NSW$ TariffQTracking$Project,$August$2011$ $ • New$South$Wales$Energy$Prices$July$2011$–$July$2012,$An$Update$report$on$the$ NSW$TariffQTracking$Project,$August$2012$ $ The$four$workbooks$and$the$reports$are$available$at$www.vinnies.org.au/energy$$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

5$All$market$offers$are$published$offers$and$do$not$include$special$offers$that$retailers$market$ through$doorQknocking$campaigns$or$brokers.$We$use$the$IPART$and$AER$websites$as$well$as$ the$retailers$own$websites$to$collect$market$offer$for$the$TariffQTracking$tool.$$If$the$retailer$ has$more$than$one$market$offer$we$use$the$one$IPART$or$AER$websites$estimate$to$produce$ the$lowest$annual$bill.$$The$TariffQTracking$tool$does$not$include$any$additional$discounts$or$ bonuses$but$key$market$offer$features$are$listed$in$the$spreadsheets.$$This$report$contains$ analysis$of$some$of$those$features.$$$

5 1.*Energy*price*changes*from*July*2012*to*July*20136* $ • Electricity$price$increases$have$been$very$moderate$this$year$(and$especially$ compared$to$the$increases$that$occurred$over$the$three$previous$years).$ $ • The$ greatest$ increases$ have$ been$ in$ Ausgrid’s$ network$ area$ (although$ moderate$ compared$ to$ the$ previous$ year)$ where$ households’$ annual$ electricity$costs$have$typically$increased$by$between$$75Q$85$since$July$2012.$$ Electricity$prices$for$customers$in$Essential’s$area$have$seen$a$small$decrease.$ See$chart$1$below.$ $ • Gas$price$increases$have$been$significant$(10%)$in$some$areas$and$moderate$ to$low$in$others.$ $ • Households$in$Sydney$(Jemena/AGL$gas$zone)$are$facing$the$greates$gas$price$ increases.$$The$annual$gas$bill$for$average$consumption$households$in$this$gas$ zone$has$incresed$by$approximately$$80.$See$chart$2$below.$$$ $ • Annual$energy$bills$(electricity$and$gas)$for$dual$fuel$Sydney$households$with$ average$consumption$have$thus$increased$by$approximately$$165$since$July$ 2012.$$See$chart$1$and$2$below.$$ $ • Annual$ electricity$ bills$ for$ allQelectric$ Sydney$ households$ with$ average$ consumption$have$increased$by$around$$75$since$July$2012.$$ $ • For$ the$ first$ time,$ some$ of$ the$ electricity$ and$ gas$ market$ offers$ contain$ published$ rates$ (prior$ to$ discounts)$ below$ the$ regulated$ rates,$ and$ as$ in$ previous$years,$some$retailers$have$published$electricity$and$gas$market$offer$ rates$above$the$regulated$offers$(prior$to$discounts).$ $ • As$more$and$more$retail$offers$have$a$pay$on$time$discount$component,$the$ financial$benefits$of$switching$will$largely$depend$on$customers’$ability$to$pay$ on$time.$$ $ • Customers$switching$from$the$regulated$electricity$offer$to$one$of$the$better$ market$ offers$ can$ save$ up$ to$ $300$ –$ $400$ on$ their$ annual$ bills$ (if$ paid$ on$ time).$ $

6$These$calculations$are$based$on$increases$to$the$regulated$offer$for$single$rate$electricity$ customers$using$7,200kWh$per$annum,$increases$to$the$regulated$offer$for$controlled$load$ electricity$customers$(typically$allQelectric$households)$using$8,000kWh$per$annum$(thereof$ 30%$offQpeak)$and$increases$to$the$regulated$offer$for$gas$customers$using$24,000Mj$per$ annum.$$$

6 • Gas$customers$in$the$greater$Sydney$area$(Jemena/AGL$gas$zone)$can$save$ between$ $125$ Q$$150$if$switching$ from$ the$ regulated$ offer$ to$ one$ of$ the$ better$market$offers$(and$pay$their$bills$on$time).$ $ • Due$ to$ lack$ of$ competition,$ gas$ customers$ in$ the$ Actew$ and$ the$ Origin/Envestra$ gas$ zones$ can$ only$ save$ by$ switching$ from$ the$ regulated$ rates$to$Origin’s$market$offer.$There$are$no$competitive$gas$offers$currently$ available$to$customers$in$the$Country/Origin$gas$zones.$$$$$ * * Chart*1*Differences$($)$to$the$annual$cost$of$electricity$from$July$2012Q2013$(based$on$ 7,200kWh$per$annum$for$single$rate$and$8,000kwh$for$two$rate,$thereof$30%$controlled$offQ peak$1$load)$ 100!

80!

60!

85! Endeavour! 40! 75! Ausgrid! 20! 35! 32! Essential! Difference(($)( 0! '17! '16! '20!

'40! $ * * * * * * * * * * * * * * *

7 Chart*2*Increases$to$the$annual$cost$of$gas$from$July$2012$to$July$2013$for$households$using$ 24,000Mj$per$annum7$

80! 70! 60! 50! 40! 30! 20!

$(increase(to(annual(bill( 10! 0! Origin! Country! AGL! Actew! $ $ * There$are$four$supply$areas$for$regulated$gas$offers$in$NSW.$$The$four$standard$ retailers$are$AGL,$Country$Energy,$ActewAGL$and$Origin$Energy.$Country$Energy$has$ six$pricing$zones,$ActewAGL$has$three$and$Origin$has$two.$ $ * Table*1$Gas$supply$areas$in$NSW$ $ NSW*Gas*Zones* * AGL* Sydney,$Newcastle,$Wollongong,$Blue$Mountains$ Country*Energy* Cooma$and$Bombala$ Holbrook,$Henty,$Culcairn$and$Walla$Walla$ Temora*$ Tumut$and$Gundagai$ Tamworth$ ActewAGL* Boroowa,$Goulburn,$Yass$and$Young$ Queanbeyan$and$Bundgendore$ Shoalhaven$ Origin* Albury,$Moama$and$Jindera$ Murray$Valley$Towns$ *$From$July$2013,$Temora$comes$under$the$same$pricing$zone$as$Holbrook,$Henty$etc.$ $ The$difference$between$winter$and$summer$consumption$will$vary$significantly$from$ household$to$household$(depending$primarily$upon$usage$of$gas$space$heating).$The$ charts$below$do$not$adjust$for$increased$winter$consumption$but$assume$consistent$ consumption$levels$throughout$the$year$and,$for$seasonal$tariffs,$the$winter/summer$

7$Based$on$increases$to$the$regulated$offer$for$gas$customers$using$24,000Mj$per$annum.$For$ Essential,$Origin$and$Actew,$the$increases$are$based$on$the$average$increases$of$regulated$ offers$in$those$gas$areas.$$

8 prices$have$been$allocated$according$to$the$timeframes$to$which$they$apply,$e.g.$4$ months$winter$peak$(33.33%$of$the$year)$and$8$months$summer$offQpeak$(66.66%$of$ the$year).$Because$of$the$seasonality$of$gas$consumption$and$gas$tariffs$the$annual$ bill$ calculations$ presented$ in$ this$ report$ are$ indicative$ only,$ and$ their$ primary$ purpose$is$to$track$changes$over$time$and$analyse$differences$between$distribution$ areas.$The$charts$below$have$assumed$an$average$annual$consumption$of$24,000Mj$ per$annum.$$$$ * Chart*3*Estimated$annual$bills$for$regulated$gas$offers$in$Jemena/AGL’s$area,$July$2012$and$ July$2013$(24,000Mj$per$annum,$inc$GST)$

$1,000! $950! $900! $850! $800! Jul'12! $750! Jul'13! $700!

$(per(annum( $650! $600! $550! $500! Sydney! * * Chart*4*Estimated$annual$bills$for$regulated$gas$offers$in$Country$Energy’s$area,$July$2012$ and$July$2013$(24,000Mj$per$annum,$inc$GST)8$

$1,100! $1,050! $1,000! $950! $900! $850! $800! Jul'12!

$(per(annum( $750! Jul'13! $700! $650! $600!

8$Note:$The$Cooma$zone$includes$Bombala.$The$Holbrook$zone$includes$Henty,$Culcairn$and$ Walla$Walla.$The$Tumut$zone$includes$Gundagai.$The$Wagga$Wagga$zone$includes$ Uranquity.$

9 Chart*5*Estimated$annual$bills$for$regulated$gas$offers$in$ActewAGL’s$area,$July$2012$and$July$ 2013$(24,000Mj$per$annum,$inc$GST)9$

$900! $850! $800! $750! $700! Jul'12! $650! $600! Jul'13! $(per(annum( $550! $500! $450! $400! Goulburn! Queanbeyan!! Shoalhaven! $ $ $ * Chart*6*Estimated$annual$bills$for$regulated$gas$offers$in$Origin’s$area,$July$2012$and$July$ 2013$(24,000Mj$per$annum,$inc$GST)10$

$800! $750! $700! $650! $600! Jul'12! $550! Jul'13! $500!

$(per(annum( $450! $400! $350! $300! Albury! Murray!Valley!! * Table$2$and$3$below$highlight$some$of$the$price$trends$for$NSW$electricity$and$gas$ offers.$ $ For$ more$ detailed$ information$ about$ the$ areas$ and$ differences$ in$ energy$ price$increases$see$section$3.$$ * *

9$ Note:$ The$ Goulbourn$ zone$ includes$ Boorowa,$ Yass$ and$ Young.$ The$ Queanbeyan$ zone$ includes$Bungendore.$$$ 10$ Note:$ The$ Albury$ zone$ includes$ Moama$ and$ Jindera.$ The$ Murray$ Valley$ zone$ covers$ Murray$Valley$towns.$

10 Table*2$Electricity$price$increases/decreases$by$area$July$2012$–$July$201311$ $ * Increase*to*annual*bill*since*July* Percentage*increase* Area* 2012* Single$rate$$ Two$rate^$ Inner*Sydney,*the*Central*Coast* $ $ $ up*to*Newcastle,*and*inland* $85$ $75$ 4%$ areas*such*as*Maitland,* $ Cessnock,*Singleton*and*Upper* Hunter*(Ausgrid)* Western*Sydney,*most*of*the* $ $ $ Illawara*Coast,*the*Blue* $35$ $30$ 2%$ Mountains*and*inland*towns* $ such*as*Lithgow*and*Kandos* (Endeavour*Energy)* Most*of*rural*and*regional*NSW*K* $ $ $ from*north*of*Port*Stephens*and* Q$15$ Q$15$ Q1%$ Murrundi,*south*of*Batemans* $ Bay*and*east*of*Lithgow* (Essential*Energy)* ^$For$allQelectric$households$with$peak/offQpeak$(controlled$load)$rates$ * * * * * * * * * * * * * * * * * * * * * * *

11$Based$on$household$consumption$of$7,200kWh$per$annum$at$the$rate$of$the$regulated$ retail$offer$for$the$single$rate$tariff.$$The$second$calculation$is$based$on$household$ consumption$of$8,000kWh$per$annum$at$the$rate$of$the$regulated$retail$offer$for$the$ controlled$load$tariff.$

11 Table*3$Gas$price$increases$(average)$by$area$July$2012$–$July$201312$ $ Area* Increase*to*annual*bill* Percentage*increase* since*July*2012* Sydney,*Newcastle,*Wollongong,* $80$ 10%$ Blue*Mountains*(AGL)* Cooma*and*Bombala*(Country* $40$ 6%$ Energy)* Holbrook,*Henty,*Culcairn*and* $40$ 6%$ Walla*(Country*Energy)* Temora*(Country*Energy)* $40$ 6%$ * Tumut*and*Gundagai*(Country* $45$ 5%$ Energy)* Wagga*Wagga*and*Uranquity* $30$ 4%$ (Country*Energy)* Tamworth*(Country*Energy)* $70$ 7%$ $ Boroowa,*Goulburn,*Yass*and* $50$ 6%$ Young*(ActewAGL)* Queanbeyan*and*Bundgendore* $10$ 1%$ (ActewAGL)* Shoalhaven*(ActewAGL)* $25$ 3%$ * Albury,*Moama*and*Jindera*(Origin)* $25$ 5%$ Murray*Valley*Towns*(Origin)* $40$ 5%$ $ $ $ $ $ * * * * * * * * * * * * * * *

12$Based$on$the$regulated$gas$rates$for$customers$using$24,000Mj$per$annum.$$

12 2.*Regulated*vs.*market*offers*July*2013* $ 2.1*Electricity:*Regulated*vs.*market*offers*July*2013* Chart$ 7$ below$ shows$ the$ estimated$ annual$ bills$ for$ regulated$ and$ market$ offers$ (excluding$ discounts)$ for$ households$ using$ 7,200kWh$ per$ annum$ in$ the$ three$ network$areas.13$Furthermore,$it$shows$that$some$market$offer$rates$are$above$the$ regulated$rates$while$others$are$below.$This$is$the$first$time$since$the$NSW$TariffQ Tracking$ project$ began$ that$ market$ offer$ rates$ (prior$ to$ discounts)$ are$ below$ the$ regulated$rates.$We$do$note,$however,$that$these$are$published$market$offer$rates$ for$ new$ customers$ and$ while$ retailers$ do$ not$ publish$ rate$ changes$ for$ existing$ customers,$we$believe$many$of$those$would$be$higher$(e.g.$at$the$same$level$as$the$ regulated$rate).$Charts$8Q10$show$the$same$comparisons$by$network$area.$$ * * Chart*7$Electricity$offers$post$July$2013$as$annual$bills$–$Market$offer$discounts$not$included,$ Single$rate,$7,200kWh$(GST$inc)$ 3,300! Regulated! 3,100! AGL! 2,900! Origin! 2,700! Powerdirect!

2,500! Red!Energy! Click! 2,300! Dodo! 2,100! Lumo! 1,900! Aus!P!&!G! Energy!Aus! 1,700! Momentum! 1,500! QEnergy! Ausgrid! Endeavour! Essential! * * * * * * * * * * * *

13$These$market$offers$were$found$on$the$AER’s$“Energy$Made$Easy”$website$or$on$the$ retailers’$own$websites$during$the$first$week$of$July$2013.$$

13 Chart*8$Ausgrid:$Electricity$offers$post$July$2013$as$annual$bills$–$Market$offer$discounts$not$ included,$Single$rate,$7,200kWh$(GST$inc)$

Ausgrid( 2,550! 2,500! 2,450! 2,400! 2,350! 2,300! 2,250! 2,200! 2,150! 2,100! 2,050! 2,000!

* * * * Chart* 9$Endeavour$Energy:$Electricity$offers$post$July$2013$as$annual$bills$–$Market$offer$ discounts$not$included,$Single$rate,$7,200kWh$(GST$inc)$

Endeavour(Energy( 2,400! 2,350! 2,300! 2,250! 2,200! 2,150! 2,100! 2,050! 2,000! 1,950! 1,900! 1,850!

* * * * * * * * * * * *

14 Chart* 10$Essential$Energy:$Electricity$offers$post$July$2013$as$annual$bills$–$Market$offer$ discounts$not$included,$Single$rate,$7,200kWh$(GST$inc)$

Essential(Energy( 3,150! 3,100! 3,050! 3,000! 2,950! 2,900! 2,850! 2,800! 2,750! 2,700! 2,650! 2,600!

$ * * * As$stated$above,$the$calculations$for$the$market$offers$in$Charts$7Q10$are$based$on$ their$rates$only$(cost$per$kWh$and$fixed$charges)$and$do$not$include$other$market$ offer$ features$ such$ as$ discounts$ on$ consumption$ rates,$ vouchers,$ signQup$ credits,$ loyalty$bonuses$and$discounts$if$bills$are$paid$on$time.$ $ Consumers$ assessing$ market$ offers$ should$ take$ these$ additional$ features$ into$ account$as$well$as$being$aware$of$contract$conditions$such$as$late$payment$fees,$the$ length$of$the$contract$and$fees$for$exiting$the$contract$early.$$ $ Charts$11Q13$below$show$the$difference$in$annual$bill$between$the$regulated$offer$ and$market$offers$(both$including$and$excluding$discounts).$They$show$that$market$ offers$(including$discounts$and$pay$on$time$discounts)$can$produce$annual$bills$that$ are:$ $ • Up$to$$400$less$than$the$regulated$offer$in$Ausgrid’s$area$ • Approximately$$300$less$than$the$regulated$offer$in$Endeavour$Energy’s$area$ • Approximately$$350$less$than$the$regulated$offer$in$Essential$Energy’s$area$$ $ However,$there$are$market$offers$available$in$each$of$the$network$areas$that$do$not$ produce$lower$bills$than$the$regulated$rates.$$$ * * * *

15 Chart*11$Annual$bills$excluding$vs.$including$discounts.$Electricity$offers$in$Ausgrid/Energy$ Australia$network$area$post$July$2013$as$annual$bills,$Single$rate,$7,200kWh$(GST$inc).14* 2,600! 2,500! 2,400! 2,300! 2,200! 2,100! 2,000! 1,900! Discount!excl! 1,800! 1,700! Discount!incl! 1,600!

Ausgrid( * * * Chart* 12$Annual$bills$excluding$vs.$including$discounts.$Electricity$offers$in$ Endeavour/Integral$network$area$post$July$2013$as$annual$bills,$Single$rate,$7,200kWh$(GST$ inc).15* 2,400! 2,300! 2,200! 2,100! 2,000! 1,900! 1,800! 1,700! Discount!excl! 1,600! Discount!incl! 1,500!

Endeavour(Energy( * $ * * * * *

14$Calculations$include$discounts$off$usage$or$bill$as$well$as$pay$on$time$discounts$off$usage$ or$bill.$ 15$Calculations$include$discounts$off$usage$or$bill$as$well$as$pay$on$time$discounts$off$usage$ or$bill.!

16 Chart*13$Annual$bills$excluding$vs.$including$discounts.$Electricity$offers$in$Essential/Country$ network$area$post$July$2013$as$annual$bills,$Single$rate,$7,200kWh$(GST$inc).16* * 3,200! 3,100! 3,000! 2,900! 2,800! 2,700! 2,600! 2,500! Discount!excl! 2,400! Discount!incl! 2,300!

Essential(Energy( * $ $ The$ discounts$ (including$ pay$ on$ time$ discounts)$ used$ to$ estimate$ annual$ bills$ for$ Charts$11Q13$above$are$shown$in$table$4$below.$$Table$4$also$shows$other$contract$ terms$ and$ features,$ such$ as$ early$ termination$ fees,$ associated$ with$ these$ market$ offers.$ Some$ of$ the$ retailers$ have$ multiple$ market$ offers$ and$ may$ offer$ different$ discounts$or$features$than$those$listed$here.$$However,$if$the$discount$is$higher$the$ length$of$the$contract$term$is$generally$longer,$and$vice$versa.$ * * * * * * * * * * * * * * * * * *

16$Calculations$include$discounts$off$usage$or$bill$as$well$as$pay$on$time$discounts$off$usage$ or$bill.$

17 Table* 4* Published$ electricity$ market$ offers$ taking$ effect$ after$ July$ 2013:$ Key$ additional$ features$and$contract$conditions$ $ * Discounts* Fixed* Early* Late* Pay*on*time* Other** term* Termination* Payment* discounts* Fee* Fee* AGL^$ 10%$off$ 2$years$ Up$to$$75$ $14$ 4%$off$usage$ Yes$ usage$ Origin^^$ 12%$off$ 1$year$ $70$ $12$ 2%$off$usage$ Yes$ usage$ Click^^^$$ No$ No$ No$ No$ 7%$off$bill$ No$ $ Aus$P&G$ No$ No$ No$ $10$ 5%$off$bill$ No$ Energy$ 3%$off$bill$ 3$years$ Up$to$$90$ No$ 8%$off$bill$ No$ Australia$ Dodo$ No$ 1$year$ Up$to$$54.60$ No$ 15%$off$usage$ Yes$ Momentum$ No$ 1$year$ $75$ No$ No$ No$ QEnergy$ No$ 1$year$ $82.50$ $15$ No$ No$ Powerdirect*$ 15%$off$ 3$years$ Up$to$$48$ $14$ No$ Yes$ usage$ Red$$ No$ 2$years$ Up$to$$95$ No$ 12%$off$bill$ Yes$ $ Lumo$ No$ 2$years$ Up$to$$75$ No$ 5%$off$bill$ Yes$ $ ^$AGL’s$offer$includes$a$further$2%$off$consumption$rates$if$bills$are$paid$by$direct$debit.$ ^^$Origin’s$offer$includes$a$further$1%$off$consumption$rates$if$bills$are$paid$by$direct$debit$and$1%$off$ electricity$consumption$if$customer$signs$up$for$gas.$ ^^^Click’s$pay$on$time$discount$requires$online$billing.$Click$also$offers$a$sign$up$rebate.$ *QEnergy’s$offer$is$not$available$to$customers$in$Essential/Country$network.$ **$Powerdirect’s$discount$on$usage$does$not$include$controlled$offQpeak.$ $ Note:$Examples$of$other$features$include$loyalty$bonuses,$credits$to$the$account$upon$commencing$a$ contract$and$shop$vouchers.$ * $ Pay$ on$ time$ discounts$ are$ becoming$ an$ increasingly$ common$ feature$ of$ energy$ market$ offers.$ $ It$ used$ to$ be$ a$ feature$ more$ commonly$ associated$ with$ 2nd$ tier$ retailers$but$now$retailers$such$as$Energy$Australia$and$AGL$are$offering$discounts$ where$ a$ significant$ proportion$ is$ conditional$ upon$ prompt$ payment.$ $ Pay$ on$ time$ discounts$ combined$ with$ late$ payment$ fees$ means$ that$ NSW$ households$ can$ be$ significantly$ penalised$ for$ late$ payment.$ Or$ conversely,$ NSW$ households$ can$ be$ significantly$rewarded$for$prompt$payment.$$$ $ Table$5$below$shows$that$paying$late$can$become$very$expensive$on$some$market$ offers.$ $ Households$ with$ Dodo$ or$ Red$ Energy$ (in$ Essential$ Energy’s$ area),$ for$ example,$would$be$over$$350$worse$off$if$they$pay$late$compared$to$paying$on$time$ on$these$offers.$Furthermore,$market$offer$customers$with$major$retailers$such$as$ AGL$and$Energy$Australia$on$these$offers$would$be$between$$130Q240$(depending$on$ retailer$and$network$area)$worse$off$if$they$pay$late,$compared$to$paying$on$time.$ *

18 Table*5*Electricity$offers$taking$affect$after$July$2013:$Difference$($)$in$annual$bill$between$ paying$all$bills$on$time$vs.$paying$all$bills$late$(based$on$7,200kWh$per$annum,$single$rate,$4$ bills$per$annum)$ $ * Ausgrid* Endeavour* Essential* Regulated*Offer* $44$ $44$ $44$ AGL* $135$ $133$ $155$ Origin* $88$ $87$ $97$ Powerdirect* $56$ $56$ $56$ Red*Energy* $267$ $264$ $358$ Click* $162$ $157$ $207$ Dodo* $296$ $289$ $372$ Lumo* $116$ $115$ $155$ Australian*P&G* $166$ $155$ $187$ Energy*Australia* $190$ $187$ $246$ Momentum* $0$ $0$ $0$ QEnergy** $60$ $60$ N/A$ *QEnergy$does$not$offer$market$contracts$to$customers$in$Essential/Country$area.$ $ $ Chart$14$below$shows$the$estimated$annual$electricity$bill$for$customers$that$always$ pay$on$time$and$for$those$who$always$pay$late,$for$published$electricity$offers$in$the$ Ausgrid$network$area.$$$ $ * Chart*14*AusGrid$network$area:$Estimated$annual$bill$for$customers$that$pay$on$time$vs.$pay$ late,$electricity$offers$as$of$July$2013,$Single$rate,$7200kWh$(GST$inc)17$$

Ausgrid( 2,600! 2,500! 2,400! 2,300! 2,200! 2,100! 2,000! Paid!on!time! 1,900! Paid!late! 1,800! 1,700!

$ $ $

17$Annual$bill$calculation$includes$discounts,$pay$on$time$discounts$and$late$payment$fees$as$ per$energy$offer.$$

19 Households$ always$ able$ to$ pay$ their$ electricity$ bills$ by$ the$ due$ date$ can$ save$ significantly$by$switching$from$the$regulated$offer$to$a$market$offer.$$By$switching$ from$the$regulated$offer$to$one$of$AGL,$Powerdirect$or$Red$Energy’s$market$offers,$a$ typical$consumption$household$may$save$between$$350Q400$per$annum.$$ $ Households$ with$ cashQflow$ problems,$ and$ who$ thus$ pay$ bills$ late,$ are$ not$ always$ able$to$achieve$the$same$savings$by$switching$from$the$regulated$offer$to$a$market$ offer.$Only$Powerdirect’s$market$offer$would$produce$an$annual$saving$of$more$than$ $350$for$late$paying$customers.$In$the$case$of$QEnergy,$customers$paying$late$will$be$ slightly$worse$off$on$their$market$offer$compared$to$the$regulated$offer.$Australian$ Power$ and$ Gas’$ market$ offer$ produces$ annual$ bills$ above$ the$ regulated$ rates$ for$ both$prompt$and$late$payers,$the$latter$group$being$around$$220$worse$off.$* * Table*6*Potential$annual$savings$($)$by$switching$from$regulated$offer$to$market$offer$in$ Ausgrid’s$network$area$(based$on$7,200kWh$per$annum,$single$rate,$4$bills$per$annum)$ $ AUSGRID*Network*Area* Paid*on*time* Paid*late* AGL* $362$ $271$ Origin* $283$ $239$ Powerdirect* $396$ $383$ Red*Energy* $353$ $129$ Dodo* $162$ $44$ Lumo* $112$ $40$ Australian*P&G* K$95* K$218* Energy*Australia* $193$ $46$ Momentum* $204$ $248$ QEnergy* $0$ K$16* * $ * Charts$15$and$16$show$a$similar$story$for$Endeavour$and$Essential$Energy’s$network$ areas.$ In$ both$ network$ areas,$ only$ four$ market$ offers$ would$ produce$ an$ annual$ saving$ for$ late$ payers$ switching$ from$ the$ regulated$ rates.$ These$ are$ AGL,$ Origin,$ Powerdirect$and$Momentum’s$market$offers.$* * * * * * * * * * * *

20 Chart*15*Endeavour$Energy$network$area:$Estimated$annual$bill$for$customers$that$pay$on$ time$vs.$pay$late,$electricity$offers$post$July$2013$as$annual$bills,$Single$rate,$7,200kWh$(GST$ inc)18$$

Endeavour(Energy( 2,400! 2,300! 2,200! 2,100! 2,000! 1,900! 1,800! Paid!on!time! 1,700! Paid!late! 1,600! 1,500!

$ * Chart* 16* Essential$ Energy$ network$ area:$ Estimated$ annual$ bill$ for$ customers$ that$ pay$ on$ time$vs.$pay$late,$electricity$offers$post$July$2013$as$annual$bills,$Single$rate,$7,200kWh$(GST$ inc)19$$

Essential(Energy( 3,200! 3,100! 3,000! 2,900! 2,800! 2,700! 2,600! Paid!on!time! 2,500! Paid!late! 2,400! 2,300!

* * * $ $ $

18$Annual$bill$calculation$includes$discounts,$pay$on$time$discounts$and$late$payment$fees$as$ per$energy$offer.$$ 19$Annual$bill$calculation$includes$discounts,$pay$on$time$discounts$and$late$payment$fees$as$ per$energy$offer.!!

21 2.2*Gas:*Regulated*vs.*market*offers*July*2013* There$are$relatively$few$gas$market$offers$available$in$NSW$and$the$only$area$where$ there$is$more$than$two$offers$(most$nonQmetropolitan$areas$only$have$the$regulated$ offer)$ is$ Sydney$ (Jemena/AGL$ gas$ zone).$ $ As$ such,$ this$ analysis$ only$ comprises$ regulated$vs.$market$offers$in$the$greater$Sydney$area.$$Chart$17$below$shows$that$ three$retailers$(Origin,$Energy$Australia$and$Australian$Power$&$Gas)$have$rates$that$ are$the$same,$or$are$above,$the$regulated$rates$(prior$to$additional$discounts).$Two$ retailers$ (AGL$ and$ Lumo),$ however,$ have$ market$ offer$ rates$ that$ are$ below$ the$ regulated$ rates.20$ Last$ year$ none$ of$ the$ retailers$ offered$ gas$ rates$ below$ the$ regulated$rates.21$$$$$ * * Chart*17$Gas$offers$in$Jemena/AGL$zone$as$annual$bills,$July$2013$(24,000Mj$per$annum,$inc$ GST)$

1,050! 1,000! 950! 900! 850! 800! 750! $(per(annum( 700! 650! 600!

$ $ The$calculations$for$the$market$offers$in$chart$17$include$rates$only$(cost$per$MJ$and$ fixed$charges)$and$do$not$include$other$market$offer$features$such$as$discounts$on$ consumption$rates,$vouchers,$signQup$credits,$loyalty$bonuses$and$discounts$if$bills$ are$ paid$ on$ time.$ $ As$ such,$ consumers$ assessing$ market$ offers$ should$ take$ these$ additional$features$into$account$as$well$as$being$aware$of$contract$conditions$such$ as$ late$ payment$ fees,$ the$ length$ of$ the$ contract$ and$ fees$ for$ exiting$ the$ contract$ early.$ * * * * *

20$These$market$offers$were$found$on$the$AER’s$“Energy$Made$Easy”$website$or$on$the$ retailers’$own$websites$during$the$period$1Q16$July$2013.$ 21$See$St$Vincent$de$Paul$Society,$New$South$Wales$Energy$Prices$July$2011$–$July$2012,$An$ Update$report$on$the$NSW$TariffQTracking$Project$by$May$Mauseth$Johnston,$August$2012!!

22 Table*7*Published$gas$market$offers$in$Jemena/AGL$gas$zone$as$of$July$2013:$Key$additional$ features$and$contract$conditions$ $ * Discounts* Fixed* Early* Late* Pay*on*time* Other** term* Termination* Payment* discounts* Fee* Fee* AGL^$ 7%$off$ 2$years$ Up$to$$75$ $13.10$ 3%$off$usage$ Yes$ usage$ Origin^^$ 12%$off$ 1$year$ $70$ $12$ 2%$off$usage$ Yes$ usage$ Energy$ 3%$off$bill$ 3$years$ Up$to$$90$ No$ 8%$off$bill$ No$ Australia$ Lumo$ No$ 2$years$ Up$to$$75$ No$ 9%$off$bill$ Yes$ $ Aus$P&G$ No$ 3$years$ Up$to$$88$ $10$ 10%$off$usage$ No$ ^AGL’s$offer$includes$a$further$2%$off$consumption$rates$if$bills$are$paid$by$direct$debit.$ ^^$Origin’s$offer$includes$a$further$1%$off$consumption$rates$if$bills$are$paid$by$direct$debit$and$1%$off$ electricity$consumption$if$customer$signs$up$for$gas.$ $ Note:$Examples$of$other$features$include$loyalty$bonuses,$credits$to$the$account$upon$commencing$a$ contract$and$shop$vouchers.$ $ $ Chart$18$below$shows$the$estimated$annual$gas$bill$for$customers$that$always$pay$on$ time$and$customers$who$always$pay$late$for$published$gas$offers$in$the$Jemena/AGL$ gas$zone.$$$ $ Chart*18$Gas$offers$in$Jemena/AGL$area:$Estimated$annual$bill$for$customers$that$pay$on$ time$vs.$pay$late$(based$on$24,000Mj$and$4$bills$per$annum,$inc$GST)22* 1,050! 1,000! 950! 900! 850! 800! Paid!on!time! $(per(annum( 750! Paid!late! 700! 650!

* * *

22$Annual$bill$calculation$includes$discounts,$pay$on$time$discounts$and$late$payment$fees$as$ per$energy$offer.$$

23 Sydney$(Jemena/AGL$zone)$households$can$reduce$their$gas$bills$by$switching$from$ the$ regulated$ offer$ to$ a$ market$ offer.$ $ As$ long$ as$ they$ do$ not$ switch$ to$ Energy$ Australia$ (their$ market$ offer$ rates$ are$ higher$ than$ the$ regulated$ rates),$ average$ consumption$households$that$always$pay$on$time$can$save$between$$125Q$150$per$ annum$by$switching$to$a$market$contract.$$Late$paying$customers$may$save$between$ $100Q$130$per$annum$by$switching$to$a$market$contract$but$these$households$would$ actually$become$worse$off$if$they$switch$to$Australian$Power$and$Gas$(in$addition$to$ Energy$Australia).$$ * Table*8*Potential$annual$savings$($)$by$switching$from$regulated$offer$to$market$offer$in$the$ Jemena/AGL$gas$zone$(based$on$24,000Mj,$4$bills$per$annum)$ $ Jemena/AGL*Gas*Zone* Paid*on*time* Paid*late* AGL* $153$ $131$ Origin* $111$ $100$ Energy*Australia* K$5* K$35* Lumo* $125$ $99$ Australian*P&G* $51$ K$17* $ $ $ * * * * * * * * * * * * * * * * * * * * * * * * *

24 3.*Total*cost*of*energy*by*area* * The$analysis$presented$in$this$report$shows$that$while$the$price$increases$have$been$ moderate$this$year$some$areas$have$experienced$higher$price$increases$than$others.$$ In$ relation$ to$ electricity,$ households$ in$ Ausgrid’s$ network$ area$ have$ seen$ the$ greatest$ electricity$ price$ increases.$ $ The$ greatest$ increases$ in$ gas$ prices$ since$ July$ 2012$ have$ occurred$ in$ the$ Jemena/AGL$ gas$ zone.$ $ As$ approximately$ 30%$ of$ NSW$ households$ are$ connected$ to$ both$ electricity$ and$ gas,$ it$ is$ important$ to$ analyse$ whether$there$are$areas$that$have$experienced$high$increases$in$both$electricity$and$ gas$prices,$and$conversely,$whether$there$are$areas$where$the$increases$in$electricity$ and$ gas$ prices$ are$ at$ the$ lower$ end.$ $ Such$ analysis$ allows$ for$ a$ more$ detailed$ understanding$of$the$total$energy$costs$faced$by$households$across$NSW.$$ $ 3.1* Inner* Sydney,* Northern* Sydney,* Swansea,* Newcastle,* Maitland,* Cessnock* Singleton* and*Upper*Hunter*$ *

* Source:$www.ausgrid.com.au$ * In$ this$ area,$ the$ regulated$ electricity$ offer$ has$ increased$ by$ $85$ per$ annum$ for$ average$ consumption$ households$ (7,200kWh)$ since$ July$ 2012.$ $ Households$ in$ the$ Jemena/AGL$gas$zone$have$experienced$an$increase$in$gas$prices$of$approximately$ $80$over$the$same$period.$ $

25 • Dual$fuel$households$with$an$average$consumption$of$electricity$and$gas$in$ inner$ and$ Eastern$ Sydney,$ Sydney’s$ North,$ Swansea$ and$ Newcastle$ have$ typically$experienced$an$increase$in$energy(costs$of$$165$since$July$2012.23$$ $ • AllQelectric$ households$ in$ Sydney,$ Newcastle,$ Maitland,$ Singleton,$ Muswellbrook$and$the$Upper$Hunter$have$typically$experienced$an$increase$ in$electricity(costs$of$$75$since$July$2012.24$$$ * 3.2* Western* Sydney,* Wollongong,* Blue* Mountains,* Lithgow,* Kandos,* Moss* Vale,* Nowra,* Ulladulla$

* Source:$www.endeavourenergy.com.au$ $ $ $

23$These$are$households$in$Ausgrid’s$electricity$distribution$network$and$Jemena/AGL’s$gas$ zone.$$ 24$These$are$households$on$a$twoQrate$(controlled$load)$tariff$in$Ausgrid’s$electricity$ distribution$network.

26 10 !"#$%&'( !"#$%&'( 11

In$ this$ area,$ the$ regulated$ electricity$ offer$ has$ increased$ by$ $30$ for$ average$ About Us consumption$ households$ (7,200kWh)$ since$ July$ 2012.$ $ Households$ in$ the$ Our strategy Jemena/AGL$gas$zone$have$experienced$an$increase$in$gas$prices$of$approximately$ C#$=%15&D=*1<5E(&(%10%*<)-&04")%)#=&& -/033*=<*(&#@*1&%/*&-#4)=<&5*01(& 25 F& $80$over$the$same$period. $ )(&%#&"*&!$(%103)0E(&3*0.)=<&*((*=%)03& $ (*1@)-*(&,1#@).*1&0=.&0&@)%03&,01%&#A&#$1& -#44$=)%)*(:& • Dual$fuel$households$with$an$average$consumption$of$electricity$and$gas$in$ 205(&%#&,1#4#%*&)=-1*0(*.&(0A*%5&0=.& Western$ Sydney,$ Wollongong,$ Blue$ Mountains$ and$ Lithgow$ have$ typically$ *=@)1#=4*=%03&,*1A#140=-*:& 26 %#&.*3)@*1&*((*=%)03&(*1@)-*(?&4**%&%/*& experienced$an$increase$in$energy(costs$of$$110$since$July$2012. $$ C#$=%15&D=*1<5&1*(%1$-%$1*.&)%(& =**.(&#A&#$1&-$(%#4*1(?&.*@*3#,& $ #,*10%)#=(&)=&788W&%#&/*3,&4**%&%/*(*& )==#@0%)@*&(#3$%)#=(&0=.&40=0<*&%/*& -/033*=<*(&0=.&(%1*=<%/*=&#$1&,#()%)#=&& • Dual$ fuel$ households$ in$ Nowra/Shoalhaven$ have$ typically$ experienced$ an$ *=@)1#=4*=%03&)4,0-%(&#A&#$1&"$()=*((:& 27 %#&4**%&A$%$1*&"$()=*((&=**.(: increase$in$energy(costs$of$$55$since$July$2012. $ C#$=%15&D=*1<5E(&H%10%*<5&H%0%*4*=%& J#$1&#,*10%)=<&.)@)()#=(&/0@*&,1)4*& $ #$%3)=*(&#$1&>*5&,1)#1)%5&01*0(&F&H0A*%5?& 1*(,#=()")3)%5&A#1&.*3)@*1)=<&#$1&& • AllQelectric$ households$ in$ Western$ Sydney,$ Wollongong,$ Blue$ Mountains,$ H*1@)-*?&]03$*&0=.&H$(%0)=0")3)%5&F&0=.& G*%2#1>&[30=_ Lithgow,$Kandos,$Moss$Vale,$Nowra$and$Ulladulla$have$typically$experienced$ #"K*-%)@*(&0=.&%01<*%(&=*-*((015&%#& 28 0-/)*@*&#$1&04")%)#=:&;/*(*&,1)#1)%)*(& an$increase$in$electricity(costs$of$$35$since$July$2012. $ Z=A10(%1$-%$1*&H%10%*<5&F&>*5&A#-$(&& 03)<=&2)%/&C#$=%15&D=*1<5E(&#"K*-%)@*(&0(& * #=&=*%2#1>&(%10%*<5&0=.&#$%-#4*( #$%3)=*.&)=&%/*&State Owned V$1&*)*& Country Energy’s regional operating area 788Q&2)%/&0&,1)4015&0)4&%#&.*3)@*1&& D=<)=**1)=<&H*1@)-*(&F&>*5&A#-$(&#=& 3.3*Rural*and*Regional*NSW*$ Services Corporations Act 1995:& .*-)()#=(&0%&0&3#-03&3*@*3&0=.&01*&0"3*&%#& (0A*?&1*3)0"3*?&R$03)%5&.1)=>)=<&20%*1&& .*3)@*1)=<&40K#1&,1#K*-%(?&(%0=.01.(& 1*(,#=.&R$)->35&0=.&*AA*-%)@*35&%#&$=)R$*?& %/0%&4**%(&%/*&Australian Drinking 0=.&(5(%*4( @01)*.&3#-03&-#=.)%)#=(&0=.&-$(%#4*1& Water Guidelines&S!6ITU&0=.&#$1& #"K*-%)@*(&0=.&%01<*%(&0=.&).*=%)A5&& =**.(: (%1)=<*=%&Drinking Water Policy. Z=A10(%1$-%$1*&V,*10%)#=(&F&>*5&A#-$(& Far North -#=()(%*=%&,$1,#(*&0-1#((&%/*&"$()=*((& #=&40)=%0)=)=<&0=.&$,<10.)=<& C#$=%15&D=*1<5E(&1*<)#=03&#,*10%)=<&01*0& Coast Region ;/*&01*0&(*1@)-*.&"5&C#$=%15&I0%*1&)(&%/*& 4#(%&01).&)=&%/*&(%0%*?&2)%/&*+%1*4*& F&*=($1)=<&%/0%&%/*&0-%)@)%)*(&#A&C#$=%15& .)(%1)"$%)#=&=*%2#1> )(&.*,)-%*.&#,,#()%*: Northern Region -3)40%)-&@01)0%)#=(&0=.&4#1*&A1*R$*=%& D=*1<5E(&*4,3#5**(&01*&03)<=*.&2)%/&%/*& Electricity network North Western .1#$&*+%*=.)=<& Region Mid North #$%-#4*(&2)%/&>*5&A#-$(&#=&1*(#$1-)=<& Coast Region %/*&=*2&BQ9&4)33)#=&P)-0&H%1**%&I0%*1& ;#&%10->&#$1&,*1A#140=-*&)=&.*3)@*1)=<&& 0-1#((&034#(%&W^&,*1&-*=%&#A&GHI?&,01%(& %/*&.*3)@*15&#A&-$11*=%&0=.&A$%$1*& #=&#$1&>*5&,1)#1)%5&01*0(?&#$1&C#1,#10%*& #A&(#$%/*1=&L$**=(30=.&& "$()=*((&=**.(: -*4*=%)=<&#$1&-#44)%4*=%&%#&)4,1#@*& H%10%*<5&H%0%*4*=%&0=.&,*1A#140=-*& 0=.&=#1%/*1=&])-%#1)0&2)%/&01#$=.&& Central 20%*1&R$03)%5&0=.&(*-$1*&(0A*&0=.&1*3)0"3*& )=.)-0%#1(&01*&,$%&)=%#&0-%)#=&%/1#$)3#4*%1*(&#A&,#2*13)=*(?&& Western ;/*(*&A#$1&#,*10%)=<&.)@)()#=(&01*& Region 20%*1&($,,3)*(&=#2&0=.&)=%#&%/*&A$%$1*: 9:Q&4)33)#=&,#3*(&0=.&9`8?888& 0&($)%*&#A&4*0($10"3*?&#,*10%)#=03& ($,,#1%*.&"5_ .)(%1)"$%)#=&($"(%0%)#=(: #"K*-%)@*(&-#=%0)=*.&)=&#$1&-#1,#10%*&& Southern NSW energy industry reform 0=.&.)@)()#=03&.0(/"#01.: Region C$(%#4*1&0=.&C#1,#10%*&!AA0)1(&F V$1&.)(%1)"$%)#=&01*0&)(&<*#<10,/)-0335& V=&98&H*,%*4"*1&788W&%/*&GHI& C#$=%15&D=*1<5E(&N#01.&0=.&D+*-$%)@*& ,1#4#%*(&0=.&,1#%*-%(&C#$=%15&D=*1<5E(& .)@*1(*&0=.&)=-3$.*(&%/*&(*4)\01).& T#@*1=4*=%&1*3*0(*.&)%(&D=*1<5&X*A#14& 4**%&1*<$30135&%#&4#=)%#1&,*1A#140=-*& 1*,$%0%)#=&%/1#$(&#A& ;10=(0-%)#=&H%10%*<5?&2/)-/&0.#,%*.&0& South Eastern Y.$03&%10->E&,1#-*((&)=@#3@)=<&0&%10.*&(03*& 0-1#((&#$1&>*5&,1)#1)%5&01*0(&0=.&%/*& -$(%#4*1&0=.&<#@*1=4*=%&1*30%)#=(?& %/*&!$(%103)0=&!3,(&0=.&40=5&-#0(%03&0=.& Region 40=0<*4*=%&#A&C#$=%15&D=*1<5E(&>*5& -#44$=)-0%)#=(&0=.&401>*%)=<& ($"\%1#,)-03&1*<)#=(: 0=.&0&,#%*=%)03&Z=)%)03&[$"3)-&VAA*1)=<&#A& (*3*-%*.&0((*%(:&;/*&T#@*1=4*=%E(& "$()=*((&1)(>(:& C#$=%15&D=*1<5E(&*3*-%1)-)%5&=*%2#1>& J)=0=-*&0=.&X)(>&F&)(&1*(,#=()"3*&& * 1*A#14(&)=-3$.*&40)=%0)=)=<&,$"3)-& -0%*1(&A#1&@015)=<&,#,$30%)#=&()a*(?&A1#4& Source:$Country$Energy,$Annual$Report$2009Q10$ V$1&,*1A#140=-*&)(&1*,#1%*.&%#&#$1& #2=*1(/),&#A&*+)(%)=<&,#2*1&(%0%)#=(&0=.& (4033&1$103&01*0(&%#&/)&0=.&3*<03?&-#4,0=5&(*-1*%01)0%&0=.& $These$are$households$in$Endeavour’s$electricity$distribution$network$and$Jemena$gas$-#4,3*%*.&"5&6*-*4"*1&7898: 0=.&I0<<0&I0<<0&2#1>)=<&)=&%/*&<0(& 1*%0)3)=<&#,*10%)#=(&#A&D=*1<5!$(%103)0?& Nature and scope of operations ($-/&0(&4)=*(&0=.&2)=.&A014(: (*-$1)%5: zone.$ =*%2#1>&01*0&#A&#$1&"$()=*((?&2/#&2)33&"*& Z=%*<103&D=*1<5&0=.&C#$=%15&D=*1<5&%#&%/*& C#$=%15&D=*1<5&)(&#=*&#A&!$(%103)0E(& ;/*&<0(&=*%2#1>&"$()=*((?&2)%/&0&"##>& Gas network 26$These$are$households$in$Endeavour$Energy’s$electricity$distribution$network$and$<)@*=&%/*&#,%)#=&#A&%0>)=<&$,&#AA*1(&%#& & 301<*(%&$%)3)%5&"$()=*((*(=*.&"5&& @03$*&#A&0((*%(&#A&B987&4)33)#=?&)(&0& #A&,#%*=%)03&.*@*3#,4*=%&()%*(&A#1&=*2& C#$=%15&D=*1<5E(&<0(&=*%2#1>(&(,0=& Jemena/AGL’s$gas$zone.$$ 2#1>&2)%/&%/*&=*2=*1(&(%05)=<&2)%/& %/*&GHI&T#@*1=4*=%?&-/01<*.&2)%/& ;/*&X*%0)3&.)@)()#=&F&-/01<*.&2)%/&& (#$=.&0((*%&0=.&)(&*01=)=<&0&-#44*1-)03& 01#$=.&9?9^8&>)3#4*%1*(&#A&.)(%1)"$%)#=& 27 C#$=%15&D=*1<5&)=&*3*-%1)-)%5&1*30%*.&1#3*(&)=& ($,,35)=<&(0A*&0=.&1*3)0"3*&*3*-%1)-)%5?& %/*&.*@*3#,4*=%&#A&C#$=%15&D=*1<5E(& $These$are$households$in$Endeavour$Energy’s$electricity$distribution$network$and$1*%$1=?&/#2*@*1&)%&1*,1*(*=%(&#=35&& ,1)@0%*&(*-%#1&%/*&1))3#4*%1*(&#A&%10=(4)(()#=& %/*)1&-$11*=%&3#-0%)#=(&F&& 20%*1&0=.&<0(&(*1@)-*(&%#&#$1&-$(%#4*1(& 1*%0)3&,1#.$-%(&0=.&(*1@)-*(&1*40)=(& ActewAGL’s$gas$zone.$%2#&,*1&-*=%&#A&C#$=%15&D=*1<5E(&%#%03&$ ,1#.$-*.&"5&%/*&H%0%*\#2=*.&<*=*10%#1(?& ,),*3)=*(&($,,35)=<&<0(&(*1@)-*(&%#& 28 I0<<0&I0<<0&0=.&L$*0="*50=: 0-1#((&1*<)#=03&GHI: $=-/0=<*.&%#&,1*,01*&A#1&%/*&GHI& $These$are$households$on$a$two0((*%&"0(*&F&0=.&C#$=%15&D=*1<5&/0(&=#&Qrate$(controlled$load)$tariff$in$Endeavour$Energy$’s$=04*35&6*3%0&D3*-%1)-)%5?&P0-R$01)*& 01#$=.&7b?888&-$(%#4*1(&0-1#((&& T#@*1=4*=%E(&D=*1<5&X*A#14& electricity$distribution$network.,30=(&%#&<1#2&)%(&<0(&=*%2#1>&"$()=*((&)=& T*=*10%)#=&0=.&D101)=<&D=*1<5&S%/*& I)%/&0=&0==$03&1*@*=$*&*+-**.)=<&& ,01%(&#A&(#$%/*1=&GHI:& Water and sewerage network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n$rural$and$regional$NSW,$the$regulated$electricity$offer$has$decreased$by$$15$for$ average$ consumption$ households$ (7,200kWh)$ since$ July$ 2012.$ $ For$ allQelectric$ households$(8,000kWh,$30%$controlled$off$peak)$the$regulated$electricity$offer$has$ also$decreased$by$$15$since$July$2012.$$ $ • Dual$fuel$households$with$an$average$consumption$of$electricity$and$gas$in$ Bathurst,$Orange,$Dubbo$and$Parkes$have$typically$experienced$an$increase$ in$energy(costs$of$$65$since$July$2012.29$$ $ • Dual$ fuel$ households$ in$ Goulburn,$ Boorowa,$ Yass$ and$ Young$ have$ typically$ experienced$an$increase$in$energy(costs$of$$35$since$July$2012.30$ $ • Dual$ fuel$ households$ in$ Queanbeyan$ and$ Bungendore$ have$ typically$ experienced$a$decrease$in$energy(costs$of$$5$since$July$2012.31$ $ • Dual$ fuel$ households$ in$ Temora,$ Tumut,$ Holbrook,$ Henty,$ Cualcairn,$ Walla$ Walla,$Cooma$and$Bombala$have$typically$experienced$an$increase$in$energy( costs$of$$25$since$July$2012.32$ $ • Dual$ fuel$ households$ in$ Wagga$ Wagga$ and$ Uranquity$ have$ typically$ experienced$an$increase$in$energy(costs$of$$15$since$July$2012.33$ $ • Dual$fuel$households$in$Tamworth$have$typically$experienced$an$increase$in$ energy(costs$of$$55$since$July$2012.34$ $ • Dual$ fuel$ households$ in$ Albury,$ Jindera$ and$ Moama$ have$ typically$ experienced$an$increase$in$energy(costs$of$$10$since$July$2012.35$ $ • Dual$fuel$households$in$the$Murray$Valley$towns$have$typically$experienced$ an$increase$in$energy(costs$of$$25$since$July$2012.36$ $

29$These$are$households$in$Essential$Energy’s$electricity$distribution$network$and$ Jemena/AGL’s$gas$zone.$$ 30$These$are$households$in$Essential$Energy’s$electricity$distribution$network$and$ActewAGL’s$ gas$zone.$$ 31$These$are$households$in$Endeavour$Energy’s$electricity$distribution$network$and$ ActewAGL’s$gas$zone.$$ 32$These$are$households$in$Essential$Energy’s$electricity$distribution$network$and$Country$ Energy’s$gas$zone.$$ 33$These$are$households$in$Essential$Energy’s$electricity$distribution$network$and$Country$ Energy’s$Wagga$Wagga$gas$zone.$ 34$These$are$households$in$Essential$Energy’s$electricity$distribution$network$and$ Essential/Country$Energy’s$Tamworth$gas$zone.$$ 35$These$are$households$in$Essential$Energy’s$electricity$network$and$Origin’s$gas$zone.$$ 36$These$are$households$in$Essential$Energy’s$electricity$network$and$Origin’s$gas$zone.!!

28 • AllQelectric$ households$ in$ Griffith,$ Bourke,$ Walgett,$ Narrabri,$ Moree,$ Glen$ Innes,$ Armidale,$ Taree,$ Coffs$ Harbour,$ Grafton$ and$ Lismore$ have$ typically$ experienced$a$decrease$in$electricity(costs$of$$15$since$July$2012.37$

37$These$are$households$on$a$twoQrate$(controlled$load)$tariff$in$Essential$Energy$’s$electricity$ distribution$network.$