OnDemand WTP Pricing Research

Distribution pricing reform will make disturbing price shock | Scoop News

Distribution pricing reform will bring disturbing price shocks

Originally published in Energy and Environment on February 28

The Electricity Authority has been warned sudden implementation of more efficient electricity distribution pricing will bring “disturbing” price shocks for many customers.

The EA is currently considering submissions on its proposals to speed up distribution pricing reform and the Electricity Networks Association says there will be material downsides for large groups of consumers and “careful transitioning is essential if the reform is to be successful”.

Even those who are pushing hard for change, such as the Electricity Retailers Association, also warn the EA the process could be difficult, and some caution is needed.

The ENA urges the EA to take part in its working groups (which includes retailers) focussing on formulating an implementation roadmap with a preliminary report due April 2019.

Their analysis identified material practical issues to be dealt with across the industry to successfully implement reform at an operational level. “The more ‘efficient’ pricing options (demand and capacity-based options) would take years to implement for some industry participants” and there was too much at stake to risk poor implementation.

“The analysis provided disturbing results, showing that negative bill shocks will be felt by those who can least afford them, and that the number of consumers negatively impacted is material enough to be worrying.”

Read complete article here:

Distribution pricing reform will make disturbing price shock | Scoop News.

Post a Comment

WP-SpamFree by Pole Position Marketing