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Legislative Assembly for the ACT: 2002 Week 13 Hansard (21 November) . . Page.. 4006 ..


THE TASK IN DETAIL

1. Provide an indicative assessment, based on information that is available at the time of the consultancy, on the likely impacts on ACT end user electricity prices for

� Small business customers (say, 150 MWh p.a.)

� Small business customers (say, 90 MWh p.a.)

� Top end residential (say, 5000 kWh p.a.)

� Average residential (say, 2500 kWh p.a.)

� Small use residential (say, 600 kWh p.a.)

attributable to the cessation of ACTEW's current franchise supplier role and adoption of full retail competition against the benefits for customers in terms of

� price levels;

� all-in-one energy packages; and/or

� any other customer benefits that are identifiable at this stage.

2. The assessor is to provide the assessment against a variety of options for a transition in the ACT to full retail competition from 1 January 2000 to include:

� the NS W timetable; and

� a transition path for full retail competition by customer class that would appear to produce the balance of costs and benefits most favourable to customers, either in the short or longer term.

3. In preparing the assessment, the assessor is to assume adoption in the ACT of technical systems and protocols for introduction of full retail competition, including identification of metering points, allocation of customers to retailer, churning rules and distributor-based secondary settlement systems, as developed through the NEMSAT process.

4. In providing the overall assessment, the assessor is to seek to quantify the implications of the following full retail competition design options:

� adoption of metered solutions or load profiled solutions, of the type identified in the NEMSAT process and proposed for adoption in NSW or Victoria, either for the customer base generally or for different customer classes;

� allocation of those additional costs associated with technical systems to support full retail competition to either those customers who choose to change retailer, to the customer base generally, or to classes of small business or residential customers; and

� three possible rates of customer chum - minimal, conservative and optimistic over the first three years following availability of full retail competition.

5. The assessor is also asked to consider the price implications, to the extent that the assessor believes appropriate, of the following energy market convergence issues:

likely growth in the penetration of natural gas in the residential and commercial markets;

implications of full retail competition and gas supply or from other sources;

the impact of renewable energy mandates from the Commonwealth or elsewhere.

6. In preparing the assessment, the assessor is to consult with and consider the views of ACTEW Distribution and electricity retailers licensed in the ACT or any current applicants for retail licences.

7. The assessor, in presenting the report, is to:

� Set out the sensitivities inherent in the analysis and assessments;

� Provide an assessment of the likely dates at which a firmer analysis may be become feasible; and

� Provide the data sets that support the assessments.


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