ELECTRICITY CONSUMPTION OF SMALL CUSTOMERS IN SOUTH AUSTRALIA
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1 ELECTRICITY CONSUMPTION OF SMALL CUSTOMERS IN SOUTH AUSTRALIA February 2004
2 DISCLAIMER This brochure reports small customer numbers and consumption using information provided to ESCOSA by ETSA Utilities. This information is provided for the purpose of adjusting ETSA Utilities tariffs in accordance with the Electricity Pricing Order. This information may differ to that reported by other sources. For example, this information is not derived from the same source as that reported to ESCOSA by retailers for the purpose of ESCOSA s annual performance reporting of the electricity retail sector. This brochure reports why such differences might arise. The information set out in this brochure is provided for information only and is not intended for commercial decision making. ESCOSA does not guarantee the accuracy of the information.
3 Electricity Consumption of Small Customers in South Australia This brochure provides general information on the small customer numbers and consumption in South Australia. This information is mainly of interest to potential and current retailers in South Australia. This brochure updates the small customer information released by the then South Australian Independent Industry Regulator (now ESCOSA) in August Defining Small Customers The South Australian Electricity Pricing Order (EPO) defines a small customer as a customer with electricity consumption levels (in respect of a single site) of less than 160 Megawatt-hours per year. These small customers became contestable customers from 1 January There are currently three retailers selling electricity to small customers in South Australia (AGL SA, Origin Energy and TXU Australia Ltd). The Electricity Act 1996 requires AGL SA to sell to any small customer who has requested electricity under a standing contract price and conditions. Two additional retailers are expected to commence retailing to small consumers in early/mid The following table shows AGL SA s standing contracts that apply to small customers. The corresponding ETSA Utilities distribution tariff categories for each standing contract price are also shown. TABLE 1: STANDING CONTRACT AND DISTRIBUTION TARIFFS FOR SMALL CUSTOMERS AGL SA standing contracts Domestic Light/Power Tariff 110 (residential) Controlled Load Tariff 116 (Off-peak hot water) General Supply Tariff 126 (small business)) General Supply Tariff 128 (small business) ETSA Utilities distribution tariffs Low Voltage Residential Single Low Voltage Off-peak Controlled Load Low Voltage Business Single Low Voltage Business 2 Customer information The customer information used in this brochure relates to ETSA Utilities distribution tariff categories. ESCOSA obtains broad customer information from ETSA Utilities as part of the annual adjustment of the distribution tariffs, which ESCOSA undertakes pursuant to the EPO. ETSA Utilities information may be different to that provided by retailers and reported in ESCOSA s annual performance reports. A major difference relates to the time that the information was compiled and whether it is based on estimated or actual outcomes. 1
4 Further, retailer information is based on metered sales whereas some ETSA Utilities information is based on transfers at transmission nodes. In addition, retailers report on the number of customers for billing purposes while ETSA Utilities reports the number of connection points. The number of connection points will differ from the number of retail customers. For example, a small business may have two different points of connection with the distribution network but be recognised by retailers as a single customer. There are also some customers included in the ETSA Utilities Low Voltage Business and Off-Peak Controlled Load tariffs that are not small customers. That is, there are some customers included in these tariff categories with consumption above 160 Megawatt-hours per year. ETSA Utilities provides the following three types of customer data in its annual price adjustment application: Actual data where actual customer information is known at the time of the annual price adjustment (applies to the and years); Estimated data where some of the customer information is estimated (applies to the year); and Forecast data where all of the customer information is forecast by ETSA Utilities in its annual price adjustment (applies to the year). The AGL SA Off-peak Controlled Load 116 tariff is relevant for electricity used primarily in permanently installed storage water heaters with a d delivery of not less than 125 litres, storage space heaters and other approved thermal storage applications. This tariff is largely applicable to residential customers. The corresponding ETSA Utilities Low Voltage Off-peak Controlled Load distribution tariff often involves a time switch and sepa metering where the timing is set in accordance with ETSA Utilities requirements regarding the timing of loads. There is no specific time at which off-peak controlled load starts each night, but it is generally from 10.00pm to 7.00am. In some cases a boost (at the off-peak ) may cut in during the day. The AGL SA General Supply 128 tariff applies to small businesses with peak and off-peak metering. The corresponding ETSA Utilities Low Voltage Business 2 tariff sets the following timing for peak and off-peak consumption: The timing is: Peak energy is energy consumed on business days between 7.00am and 9.00pm (Central Standard Time). However, if metering does not recognise specific days, peak energy is energy consumed on each day between 7.00am and 9.00pm (Central Standard Time); and 2
5 Off-peak energy is energy consumed other than peak energy. Number of small customers Table 2 shows the number of small customers in South Australia for (actual) to (forecast). The data show a steady increase in customer numbers for all categories of small customers aside from the Low Voltage Business 2, which is forecast to decline in 2003/04. ETSA Utilities forecasted a decline in Low Voltage Business 2 customers following a review by ESCOSA into supply charges for multiple connection points. ETSA Utilities forecasted a shift by some small farm customers away from the Low Voltage Business 2 to the Low Voltage Business single (which has a lower supply charge). TABLE 2: NUMBER OF SMALL CUSTOMERS IN SOUTH AUSTRALIA Customer category (actual) (actual) (estimate) (forecast) Low voltage business 2 26,581 27,336 27,072 24,142 Low voltage business single Low voltage residential single Low voltage off-peak controlled load 70,680 71,238 70,688 74, , , , , , , , ,694 Consumption of small customers The consumption of small customers (measured in megawatt-hours) in South Australia between and is shown in table 3. The table shows that small business and residential consumption is forecast to increase in 2003/04, while the Off-peak Controlled load is forecast to decline. The drop in consumption in is mainly attributable to the fall in residential consumption in response to the mild summer in that year relative to the previous year. TABLE 3: CONSUMPTION (MWH) OF SMALL CUSTOMERS IN SOUTH AUSTRALIA Customer category Low voltage business 2 1,325,286 1,411,400 1,390,000 1,440,000 Low voltage business single Low voltage residential single Low voltage off-peak controlled load 822, , , ,000 3,357,396 3,076,266 3,340,000 3,430, , , , ,000 Total 6,323,103 6,101,232 6,415,000 6,565,000 3
6 Unmetered consumption The ETSA Utilities unmetered tariffs are also part of the load for small customers. This includes the Unmetered Usage (Overnight) tariff, which is used for public street lighting and the Unmetered Usage (24 hour) tariff for other unmetered supply, such as that used by public phones, traffic lights and telecommunications installations. There has been a significant increase in electricity usage for both of these unmetered supply categories since (table 4). ESCOSA notes that this increase might merely reflect improvements in the accuracy of unmetered supply information over the reporting period, especially in relation to public street lights. TABLE 4: CONSUMPTION (MWH) OF UNMETERED SUPPLY Customer category Low voltage business 2 (overnight) Low voltage business single (24 hour) 78,209 86,585 94,000 95,000 8,185 8,801 10,000 10,000 Total 86,394 95, , ,000 Additional information ESCOSA has engaged the Electricity Supply Industry Planning Council to provide independent forecasts of customer consumption and peak demand over the 2005 to 2010 period. ESCOSA will also be producing forecasts of customer numbers over this period. This work is required by ESCOSA as part of the electricity distribution price review and will be made available prior to the draft determination being released in November Additional retail customer information is also available in ESCOSA s 4th annual performance report and ESCOSA s final report into the 2004 standing electricity contract prices. These reports are available at ESCOSA s website at: As noted earlier, the information provided from these sources may be different to the information provided by ETSA Utilities and used in this brochure. 4
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