APVI Submission to the AEMC Network Pricing Amendments

Summary of APVI Response

1. The APVI agrees that network pricing should be efficient and technology neutral.

2. The APVI does not agree with the premise that economically efficient pricing must involve recoupment of past expenditure, particularly where this expenditure was not itself economically efficient. Customers should not be forced to pay for investments they did not choose and do not need.

3. The APVI has serious concerns about some of the background modelling underlying the AEMC Determination. These could have significant impacts on the results and recommendations provided.

4. APVI’s own modelling concludes that a demand component added to electricity tariffs provides a fairer price signal to customers than uniform high fixed network components or time of use tariffs.

The full submission can be found here and the media release can be found here.

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