16Determining model annual usage and annual prices

16 Determining model annual usage and annual prices

(1) The AER must, by legislative instrument, determine the following matters for a financial year in relation to supplying electricity in a distribution region to small customers of a particular type: (a) both of the following that the AER considers to be broadly representative, at the time it makes the determination, of the supply of electricity in that region in the year to small customers of that type: (i) the per‑customer amount of electricity supplied; (ii) the timing or pattern of the supply (subject to subsection (2)); (b) what the AER considers would be a reasonable per‑customer annual price for supplying electricity in that region to small customers of that type in accordance with the matters determined under paragraph (a).

Note: For distribution regions to which this instrument does not apply in relation to a financial year, see section 8.

(2) Subparagraph (1)(a)(ii) does not apply in relation to small business customers. (3) Despite subsection 33(3A) of the Acts Interpretation Act 1901, the AER must not, under subsection (1) of this section: (a) determine a matter in relation to supplying electricity: (i) in a part, but not all, of the distribution region; or (ii) to some, but not all, small customers of that type in the region; or (b) make different provision with respect to supplying electricity: (i) in different parts of the region; or (ii) to different small customers of that type in the region. Matters relevant to determining annual prices (4) For the purposes of paragraph (1)(b), the AER must have regard to the following matters: (a) the prices electricity retailers charge for supplying electricity in the region to that type of small customer; (b) the principle that an electricity retailer should be able to make a reasonable profit in relation to supplying electricity in the region; (c) the following costs: (i) the wholesale cost of electricity in the region; (ii) the cost of distributing and transmitting electricity in the region; (iii) the cost of complying with the laws of the Commonwealth and the relevant State or Territory in relation to supplying electricity in the region; (iv) if relevant to the region—the cost of acquiring and retaining small customers; (v) the cost of serving small customers; (d) any other matter the AER considers relevant.

Note: Before making a determination, the AER must consider any submissions received under subsection 17(1).