Tasmanian Energy Prices July 2015

Transcription

1 Tasmanian Energy Prices July 2015 An Update Report on the Tasmanian Tariff-Tracking Project Amended 14 August 2015

2 TasmanianEnergyPricesJuly2015 AnUpdatereportontheTasmanianTariff>TrackingProject (Amended14August2015) MayMausethJohnston,August twitter.com/alvissctwitter.com/vinniesaust Contact:GavinDufty Manager,SocialPolicyUnitVictoria StVincentdePaulSociety Phone:(03) or twitter.com/gavindufty StVincentdePaulSocietyandAlvissConsultingPtyLtd Thisworkiscopyright.ApartfromanyusepermittedundertheCopyrightAct1968(Ctw),no parts may be adapted, reproduced, copied, stored, distributed, published or put to commercialusewithoutpriorwrittenpermissionfromthestvincentdepaulsociety. 1

3 Disclaimer Theenergyoffers,tariffsandbillcalculationspresentedinthisreportandassociated 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 energyretailer.theinformationpresentedinthisreportandtheworkbooksisnot providedasfinancialadvice.whilewehavetakengreatcaretoensureaccuracyof theinformationprovidedinthisreportandtheworkbooks,theyaresuitableforuse onlyasaresearchandadvocacytool.wedonotacceptanylegalresponsibilityfor errorsorinaccuracies.thestvincentdepaulsocietyandalvissconsultingptyltddo not accept liability for any action taken based on the information provided in this reportortheassociatedworkbooksorforanyloss,economicorotherwise,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. 2

4 Acknowledgements ThisprojectwasfundedbyEnergyConsumersAustralia ( advocacyprojectsandresearchprojectsforthebenefitofconsumersofelectricity andnaturalgas. TheviewsexpressedinthisdocumentdonotnecessarilyreflecttheviewsofEnergy ConsumersAustralia. 3

5 NoteregardingtheRepealofthecarbontaxbill On23June2014theGovernmentreintroducedtheCleanEnergyLegislation(Carbon TaxRepeal)Bill2013[No.2]intheHouseofRepresentatives.Thebillrepealedthe sixactsthatestablishedthecarbonpricingmechanism.thesenatepassedthebill on17july2014andretailerswererequiredtopublishnew,carbonexclusive,prices andbackdatetheseto1july. InTasmania,AuroraEnergyintroducedcarbonexclusivepricesasof1July2014,in anticipation of the Senate passing the bill. This update report therefore compares carbonexclusiveratesasofjuly2014tonewratesintroducedinjanuary2015(gas only)andjuly2015(electricity). This is different to the July 2015 TariffcTracking reports we produce for other jurisdictions. All other retailers/jurisdictions updated prices after the repeal had passed and as the methodology of the Vinnies TariffcTracking project is based on providingannualpriceupdatesasofjulyeveryyear,thejuly2014tariffscollected werecarboninclusive. 4

6 TheTasmanianTariff>TrackingProject This project has tracked electricity tariffs in Tasmania from July 2009 to July 2015, anddevelopedaspreadsheetcbasedtoolthatallowsconsumeradvocatestobuildon theinitialanalysisandcontinuetotrackchangesastheyoccur. Wehavedevelopedfourworkbooksthatallowtheusertoenterconsumptionlevels andanalysehouseholdbillsforelectricityoffersfromjuly2009tojuly2015,aswell ascurrentpublishedgasandelectricitymarketoffers. Workbook1:RegulatedelectricityoffersJuly2009cJuly2015 Workbook2:PayasyougoelectricityoffersJuly2009cJuly2015 Workbook3:ElectricitymarketofferspostJuly Workbook4:GasmarketofferspostJuly2013,2014and2015 The four workbooks can be accessed at the St Vincent de Paul Society s website: 1 AsnonewretailershaveenteredtheTasmanianresidentialretailmarket(asof29July 2015)andAuroraisnotofferingnewtariffstructures/pricesformarketoffercustomers,this workbookdoesnotcurrentlycontainanydata. 5

7 ThisreportpresentssomeofthekeyfindingsproducedbytheTariffcTrackingtoolto date. TableofContents Acknowledgements 3 NoteregardingtheRepealofthecarbontaxbill 4 TheTasmanianTariff>TrackingProject 5 1.Introduction 7 Assumptions 9 2.ElectricityandgaspricechangesfromJuly2014toJuly RegulatedandmarketofferspostJuly Electricity:RegulatedandmarketofferspostJuly GasmarketofferspostJuly EnergycostsfordualfuelhouseholdspostJuly Supplycharges Electricitysupplycharges Gassupplycharges 19 5.Networkcharges 20 6

8 1.Introduction Tasmania implemented the National Energy Customer Framework(NECF) on 1 July 2012 and the Australian Energy Regulator (AER) thus assumed jurisdiction over customer protections. On 1 July 2014, Tasmania introduced full retail competition. The electricity retail market is thus open for new entrants but there are no new retailersofferingcontractstoresidentialconsumerstodate. 2 Aurora spayasyougo (prepayment meter) product is the only deregulated electricity offer available to residential consumers. For all other metering types, Aurora offers the regulated rates. One product differentiation Aurora does offer in conjunction with the regulatedratesisadirectdebitbillingdiscountof5.5centsaday. Another emerging reform involves changes to the underlying network tariffs. The distributor, TasNetworks, is currently considering a tariff reform with the aim of introducingmorecostreflectiveprices. 3 Thetariffreviewisforeshadowingaclosure oftheuncontrolledoffcpeakrateandagradualmovetowardsdemandbasedtariffs. TasNetworksreviewbrochurestates: Many network tariffs do not properly reflect the costs of providing the networkservice.forexample,theuncontrolledloadtariffforwaterheating and/or residential space heating is heavily crosscsubsidised by other customers. The tariff also allows consumption at offcpeak rates at all time, includinggenuinelypeakperiods. 4 As the majority of households are connected to offcpeak tariff 41 or 42 and an estimated60%ofhouseholds totalconsumptioncurrentlyattractsthislowertariff rate,suchtariffreformcouldhavesignificantimpactonhousehold selectricitybills. 5 An average consumption household on tariff 41/42 currently pays $300 less per annumforelectricitycomparedtoahouseholdontheflatrate(tariff31). WhiletheTasmanianMinisterforEnergy,MatthewGroom,recentlystatedthatthe Governmentwouldnotallowreformsthatwere"contrarytothebestinterestsof 2 Therewerenonewentrantsornewmarketoffersasof29July TasNetworksisastategovernmentownedcorporationthatwasformedbyamergerof Aurora sdistributionnetworkandtransend(thetransmissionbusiness)injuly TasNetworks,Improvingthewaywepriceourservices,6at engagement/tas0107_tariffcpricingcinformationcbrochure.pdf 5 AccordingtoOTTER,83%ofcustomersconnectedtotariff41or42seeOTTER,Comparison* of*2013*australian*standing*offer*energy*prices,april2013,p7. The60%offcpeakallocation isbasedonanalysispresentedinotter,information*paper,*typical*electricity*customers, September2010 7

9 Tasmanianconsumers" 6 webelieveoneparticularaspectoftasnetworks tariff reformproposalisofconcern.itstates: During the transitional phase, we will make improvements to existing tariffs. In a number of instances we will increase the fixed component and reduce the consumptioncbasedcharges. 7 As discussed in section 4 of this report, high supply charges result in low consumptionhouseholdspayingaproportionallyhighercostperunitofenergythan high consumption households. For a low consumption household (5,000 kwh/annum),21%ofthebillcurrentlygoestocoversupplychargesonly(tariff31). For high consumption households (15,000 kwh/annum), on the other hand, the supplychargeisonly8%ofthebill. 8 TheTasmanianGovernmentshouldtherefore considerassistancemeasures(e.g.asupplychargeconcession)tohelpconsumerson fixed and low income, such as pensioners, with higher and unavoidable supply charges. 9 Aurora Energy is currently the only electricity retailer that supplies residential consumers and while the regulator determines the prices for customers on the standardrateitdoesnotregulatethepayasyougo(precpaymentmeterorpayg) tariffs. Tasmania has approximately 230,000 residential electricity connections and approximately13.3%(or30,640)ofthosewereonpaygproducts. 10 The average gas consumption (40,000Mj per annum) for Tasmanian households is lower than in Victoria and the ACT but greater than in South Australia, NSW and Queensland. However, relatively few Tasmanian households are connected to reticulated gas (approximately 10,000 households). 11 Gas retail prices are not regulated in Tasmania and there are currently two retailers offering gas to residential customers: Aurora and Tas Gas (the latter having the greater market share). The Tasmanian gas retail market has been open to full retail competition sinceitsgasreticulationnetworkwascompletedin2007buttwooutoffourretailers havesurrenderedtheirretaillicencessince Assuch,itmaynotbesurprising that the bill differentiation between the retailers is low. An average consumption 6 ABCNews,Daysofskyrocketingelectricitypricesareover,EnergyMinisterMatthew Groomsays(28July2015)athttp:// skyrocketingcpowercpricescarecovercsayscgroom/ TasNetworks,Improvingthewaywepriceourservices,7at engagement/tas0107_tariffcpricingcinformationcbrochure.pdf 8 Seechart12insection4 9 WenotethatTasmanianconcessioncardholdersarenotcurrentlychargedafixedsupply chargeifonaurora spayg(precpayment)tariff. 10 OTTER,Energy*in*Tasmania*@*Performance*Report*2013@14,January2015, OTTER,Energy*in*Tasmania*@*Performance*Report*2013@14,January2015, CountryEnergyandTRUenergysurrenderedtheirretaillicences.SeeElectricitySupply IndustryExpertPanel,Tasmania s*energy*sector* *an*overview,discussionpaperapril

10 householdwithtasgaswouldpay$1,420perannumandonly$4lessifwithaurora. Furthermore, none of the published gas market offers include discounts or other incentivesthattypicallycharacterisemarketoffersinothernemjurisdictions. Assumptions Consistent with our previous reports, we have assumed a typical household consumption of 9,060kWh per annum for allcelectric households, 40,000Mj per annum for gas, and 6,400kWh per annum in electricity consumption for dual fuel households on a single rate tariff for the analysis presented in this report. 13 In relation to the various offcpeak and hot water tariffs we have allocated the consumptionaccordingly: 14 Table1Assumptions:consumptionsplitsforstandardtariffs Tarifftype Tariffcombination Consumptionsplit(%) Hotwater :40 Hotwater/space :60 heating42 Hotwater41withoff :30:30 peakboost(61) Hotwater42withoff peakboost(61) :40:20 *Tariff62(nightoffcpeak)hasnotbeenincludedinanalysisduetoverylow customernumbers For customers with TOU metering (Aurora s PAYG product) we have assumed an annual consumption of 9,060kWh with 40% of consumption allocated to summer rates and 60% to winter. 15 Table 2 below shows the time of week and day consumptionassumptionsusedfortheanalysispresentedinthisreport OTTERstatesthatatypicalTasmaniancustomerusesaround9,055kWhperannum.Otter, Comparison*of*2013*Australian*Standing*Offer*Energy*Prices,April2013(page19forgasand page10forelectricity).toestimatethecombinedenergybillfordualfuelhouseholdswe haveassumedthattheyuseapproximately30%lesselectricitycomparedtoallcelectric households.notethatthetariffctrackingtool(theworkbooks)isdesignedsouserscan inserttheirownconsumptionlevels. 14 TheseallocationsarebasedonanalysispresentedinOTTER,Information*Paper,*Typical* Electricity*Customers,September OTTERstatesthatthesummer/wintersplitvariesbetweenthePAYGtarifftypes.For mediumconsumptionhouseholdstheseasonalsplitis40:60forcustomersontheoffcpeak orhydroheattariff,whilecustomersonthestandardtariffhaveanevenconsumption throughouttheyear(50:50).forthepurposeofthisanalysis,wehaveassumeda40:60split forallpaygtarifftypesbutnotethatthisassumptioncanbevariedinthetariffctracking tool(workbook2). 16 BasedonfigurespresentedinOTTER,2013*Aurora*Pay*As*You*Go*price*comparison*report, August2013.Notethatoursummereveningproportionis1%lessthanthatusedbyOTTER inordertoensurethatitaddsupto100%. 9

11 Table2Assumptions:TOUconsumptionproportionsforPAYGtariffs Timeofweek/day Summer Winter Weekdaymorning 16% 15% Weekdayarvo 17% 14% Weekdayevening 23% 18% Weekdaynight 15% 24% Weekendmorning 6% 5% Weekendarvo 8% 7% Weekendevening 9% 7% Weekendnight 6% 10% Sum 100% 100% 10

12 2.ElectricityandgaspricechangesfromJuly2014toJuly2015 Intermsofgeneraltrends,thetariffanalysishasfoundthat: Inresponsetotherepealofthecarbontax,Tasmanianhouseholdsreceived electricitypricecuts of approximately 13% in July AsofJuly2015, however,priceshaveincreasedby2%. Tasmanian electricity retail prices taking effect in July 2015 produce annual bills that are typically $40 more(some variation between tariff types) than theywerelastyear(july2014).seechart2below. The annual cost of electricity for average consumption households on Aurora spayasyougo(payg)timeofusetariffshaveincreasedbybetween $40c$50.Seechart4below. Annual gas bills for average consumption households have increased by between$95c$125comparedtolastyear(july2014).seechart5below. Chart 1 Regulated electricity prices 2014c15 (bothcarbonexclusive), annual bills for householdsconsuming9,060kwhperannum(inclgst) 18 Annual&bills&($)& 2,800$ 2,600$ 2,400$ 2,200$ 2,000$ 1,800$ 1,600$ 1,400$ 1,200$ 1,000$ Jul,14$ Jul,15$ 17 AuroraEnergyanticipatedtherepealinadvanceandintroducesnew,carbonexclusive, pricesasof1july SeeTable1forabreakdownoftheconsumptionsplitsusedforthesecalculations 11

13 Chart2IncreasestotheannualbillfromJuly2014toJuly2015,regulatedelectricityprices forhouseholdsconsuming9,060kwhperannum 60$ Increases&($)&to&annual&bill& 50$ 40$ 30$ 20$ 10$ 0$ T31$ T31+41$ T31+42$ T $ T $ Chart3ElectricitypricesJuly2014 July2015(bothcarbonexclusive),Payasyougomarket offers,annualbillsforhouseholdsconsuming9,060kwhperannum(inclgst) 19 2,600$ 2,400$ Annual&bills&($)& 2,200$ 2,000$ 1,800$ 1,600$ 1,400$ 1,200$ Jul,14$ Jul,15$ 1,000$ Standard$ Off,peak$ Hydroheat$ 19 SeeTable2forabreakdownoftheconsumptionsplitsusedforthesecalculations 12

14 Chart4IncreasestotheannualbillfromJuly2014 July2015,Payasyougomarketoffers forhouseholdsconsuming9,060kwhperannum 60$ Increases&($)&to&annual&bill& 50$ 40$ 30$ 20$ 10$ 0$ Standard$ Off,peak$ Hydroheat$ Chart5GaspricesJuly2014 July2015(bothcarbonexclusive),asannualbills,40,000Mj perannum(inclgst) 1,450$ 1,400$ 1,350$ Annual&bills&($)& 1,300$ 1,250$ 1,200$ 1,150$ Jul,14$ Jul,15$ 1,100$ 1,050$ 1,000$ Aurora$ TasGas$ 13

15 3.RegulatedandmarketofferspostJuly2015 Although Tasmania introduced full retail competition in July 2014, residential electricitycustomerscancurrentlyonlychoosebetweenaurora sregulatedstandard ratesandpaygproducts. Therearethreemaintarifftypesforthestandardrates:theflatrate(tariff31),flat ratecombinedwithahotwatertariff(tariff41or42)andflatratecombinedwithan offcpeaktariff(tariff61).thecombinationofaflatrateandhotwatertariffismost common(83%ofcustomers).only6%ofcustomersareonaflatrateand11%areon anoffcpeakcombinationtariff Electricity:RegulatedandmarketofferspostJuly2015 Chart 6below shows that households using 9,060kWh per annum will have an annual electricity bill of between $2,065 and $2,610. The tariff combination that is most likely to produce the lowest annual bill for households with a typical consumptionpatternisflatrate(t31)combinedwithoffcpeak(t61)andahotwater tariff(t41). Chart6Regulatedelectricityoffersasannualbills,postJuly2015,9,060kWhperannum(GST inc) 21 Annual&bill&($)& 2,800$ 2,600$ 2,400$ 2,200$ 2,000$ 1,800$ 1,600$ 1,400$ 1,200$ 1,000$ 20 OTTER,Comparison*of*2013*Australian*Standing*Offer*Energy*Prices,April2013,p7.Note: Thereisalsoatariff62butasveryfewcustomersareonthistariffithasnotbeenincluded inthisanalysis. 21 SeeTable1forabreakdownoftheconsumptionsplitsusedforthesecalculations 14

16 Chart7belowshowsthattypicalconsumptionhouseholdsonAurora spaygtariffs will have an annual electricity bill of between $2,200 and $2,365, and that the Hydroheat tariff is the PAYG product that produces the lowest annual bill for householdswithtypicalconsumptionpatterns. Chart7Electricitymarketoffers(PAYG)asannualbills,postJuly2015,9,060kWhperannum (GSTinc) 22 2,400$ 2,200$ Annual&bill&($)& 2,000$ 1,800$ 1,600$ 1,400$ 1,200$ 1,000$ Standard$ Off,peak$ Hydroheat$ 3.2GasmarketofferspostJuly2015 TherearenoregulatedgasoffersinTasmaniaandonlyAuroraandTasGascurrently have gas market offers for residential consumers. As of 2014 Aurora had a gas marketshareofapproximately35%andtasgasheldtheremaining65%. 23 Chart 8 below shows that a household with average gas consumption will pay approximately $1,420 for gas per annum and that Tas Gas and Aurora s rates are almostexactlythesame. 22 SeeTable2forabreakdownoftheconsumptionsplitsusedforthesecalculations 23 OTTER,Energy*in*Tasmania,*Performance*Report*2013@14,January2015,169 15

17 Chart8GasofferspostJuly2015,asannualbills,40,000Mjperannum(inclGST) Annual&bill&($)& 1,500$ 1,400$ 1,300$ 1,200$ 1,100$ 1,000$ 900$ 800$ 700$ 600$ Aurora$ TasGas$ 3.3EnergycostsfordualfuelhouseholdspostJuly2015 Householdswithreticulatedgaswilltypicallyhavehigherenergybillscomparedto allcelectrichouseholds. 24 Chart9belowshowsthatadualfuelhouseholdconsuming 6,400kWh of electricity per annum (approximately 30% less than an average allc electric household) and 40,000Mj of gas will have an annual energy bill of approximately$3,360. Chart9AnnualbillfordualfuelhouseholdspostJuly2015,6,400kWh(standardrate)and 40,000Mj(inclGST) 25 3,500$ Annual&energy&bill&($)& 3,000$ 2,500$ 2,000$ 1,500$ 1,000$ 500$ 1,938$ 1,418$ Electricity$$ Gas$ 0$ 24 Itshouldbenoted,however,thatmanyallcelectrichouseholdshaveotherheating expensessuchasfirewoodorliquefiedpetroleumgas(lpg) 25 AnnualgasbillcalculationisbasedontheaverageofAuroraandTasGas rates 16

18 4.Supplycharges 4.1Electricitysupplycharges Thesupplychargeisafixeddailychargethatispaidinadditiontotheconsumption chargesforelectricityused.intasmaniathesupplychargeforresidentialelectricity has decreased by 13% in July 2014 (both the regulated rates and Aurora s PAYG offer).injuly2015,however,alloffersincreasedby2%.asofjuly2015,customers on the flat rate (Tariff 31) pay $325 per annum in fixed supply charges while customers with hot water rates (Tariff 41 and 42) pay $390. The greatest supply chargeof$470perannumisappliedtothosewhohaveahotwatertariffaswellas anoffcpeakboost(t31+t41/42+t61).chart10belowshowsthechangestothedaily supplychargesforregulatedelectricityratesfrom2013to2015. Chart10Dailysupplycharge,regulatedelectricityoffers,2009c2015(inclGST) $ $ $ Cents&per&day& $ 80.00$ 60.00$ 40.00$ 20.00$ T31+41/42+T61$ T31+T41/42$ T31$ 0.00$ Jul09$Jul10$Jul11$Jul12$Jul13$Jul14$Jul15$ CustomersonAurora spaygoffers,however,payfrom$490to$505perannumin fixedcharges.customersonthestandardpaygratepay$165moreinfixedcharges per annum than customers on the standard regulated rate. Chart 11 below shows thechangestothedailysupplychargesforpaygoffersfromjuly2009tojuly

19 Chart11Dailysupplycharge,Aurora spaygelectricityoffers,2009c15(inclgst) 180$ 160$ 140$ Cents&per&day& 120$ 100$ 80$ 60$ 40$ 20$ Standard$ Off,peak$ Hydroheat$ 0$ Jul09$ Jul10$ Jul11$ Jul12$ Jul13$ Jul14$ Jul15$ High supply charges result in low consumption households paying a proportionally higher cost per unit of energy than high consumption households. This has significant equity implications as some customer classes characterised by low and fixedincomealsouselesselectricitythanthetasmanianaverage.pensionersmake uponeoftheselowerconsumptiongroups. 26 Chart12belowshowsthedifferencebetweenhouseholdsconsuming5,000kWhper annum(bluebar)andhouseholdsconsuming15,000kwhperannum(redbar)when it comes to the proportion of the annual electricity bill that goes to cover fixed supplycharges.thefixedsupplychargeiscurrentlybetween27c31%oftheannual electricitybillforalowconsumptionhouseholdwithanoffcpeakrate(tariffs41/42 and41/42+61)and21%ontheflatrate(tariff31).ahighconsumptionhousehold ontheotherhand,wouldpaybetween8c13%oftheirannualbillinfixedcharges. 26 ConcessioncardholdersonAurora spaygoffersdonotpaythefixedsupplycharge. 18

20 Chart12Supplychargeasproportionofannualelectricitybills,highVs.lowconsumption, July $ Proportion&(%)&of&bill& 30$ 25$ 20$ 15$ 10$ 5$ 0$ Low$(5,000kWh)$ High$(15,000kWh)$ 4.2Gassupplycharges The gas supply charge, at just over 46 cents/day, is significantly lower than the electricity supply charges. That said, gas customers have experienced a significant increasetothesupplychargeoverthelastyear. 27 Lastyearthegassupplycharge was similar to the additional supply charge electricity customers with offcpeak/hot watertariffsincurred.now,however,thegassupplychargeistwicethat.tasmanian householdscurrentlypayapproximately$170perannuminordertobeconnected to natural gas. Chart 13 shows annual supply charge for gas customers from July 2013toJuly2015. Chart13Gassupplychargeas$perannum,2013c2015(inclGST) 180$ 160$ 140$ $&per&annum& 120$ 100$ 80$ 60$ 40$ 20$ 0$ Jul13$ Jul14$ Jul15$ 27 ThesegastariffstookeffectinJanuary

21 5.Networkcharges The Tasmanian electricity network, TasNetworks, introduces new Network Use of System(NUOS)chargesinJulyeveryyear.TheseNUOSchargesareapprovedbythe AustralianEnergyRegulator(AER)andcompriseTransmissionUseofSystem(TUOS) and Distribution Use of System(DUOS) as well as other costs such as jurisdictional charges.theretailerscan,andgenerallywill,buildchangestothenuos(inrelation tobothshapeandprice)intotheirretailtariffs.theretailerscan,andgenerallywill, build changes to the NUOS(in relation to both shape and price) into their market retail tariffs. As Tasmania also has a regulated retail offer, the Office of the Tasmanian Economic Regulator (OTTER) also changes the regulated retail rate to reflectchangestothenuos. The chart presented in this section shows that while Aurora s NUOS charges have increased for average consumption households over the last 5 years, network chargesasproportionoftotalbill(incl.gst)declinedin2012(to50%)butjumpedto 62%inJuly2014partlyduetolowerretailprices. Thisreflectstheremovalofthe carbontaxfrom1july2014(whichhadverylittleimpactonthenuoscharges).in July2015,retailpricesincreasedmorethantheNUOSandtheNUOSproportionhas thusdeclinedslightly(to60%).chart14showsannualretailbills(solidline),nuos chargesasannualcost(dottedline)andnuosasproportionofannualbill(columns). Chart14 Aurora:Retailbillperannum(incl.GST),NUOScharges(excl.GST)andNUOSas proportionoftotalbillfrom2009to2015.basedontheregulated/standingofferretailtariff, singlerate,9,060kwhperannum 28 $&per&annum& 3500$ 3000$ 2500$ 2000$ 1500$ 1000$ 500$ 0$ 2009$ 2010$ 2011$ 2012$ 2013$ 2014$ 2015$ 100$ 90$ 80$ 70$ 60$ 50$ 40$ 30$ 20$ 10$ 0$ %&of&annual&cost& NUOS$proportion$(%)$ NUOS$($)$ Retail$($)$ 28 Basedontheregulatedofferratesfrom2009to2015,presentedasannualbillsfor householdsusing9,060kwhperannum(flatrate).theannualnuoschargeshavebeen calculatedbyallocating2,265kwhperquarter(againbasedonannualconsumptionof 9,060kWh)tothestepchargesstipulatedintheNUOS.TheannualNUOScostalsoincludes fixedcharges. 20