Marsden Jacob Associates notes the release of the Economic Regulation Authority’s (ERA) draft recommendations for retail electricity tariffs in Western Australia. In the Draft Report, the ERA has estimated that residential electricity tariffs must increase by a further 23.1 per cent to achieve cost reflective levels, inclusive of the Commonwealth Government’s carbon pricing scheme and the Tariff Equalisation Contribution.
Marsden Jacob assisted the ERA during the inquiry through the development of an optimisation model for wholesale energy procurement by the state-owned energy retailer, Synergy. The optimisation model identifies an efficient procurement strategy for Synergy given existing contractual commitments, carbon pricing and intermittent (renewable) generation. Marsden Jacob’s work also assisted in quantifying the impact of changes in government policy and market rules on Synergy’s procurement strategy, and the effect of alternative methodologies for allocating costs between customer groups.
A copy of the ERA’s report is available here.
For more information, please contact Peter Shardlow (Ph: 08 9324 1785).