Queensland’s Uniform Tariff Policy AER’s QLD TSS Public Forum 13 April 2016

Uniform Tariff Policy 2 Taxpayer funded policy to subsidise regional electricity prices for most customers Outworked through the Notified Prices From 1 July 2016 the Notified Prices apply to: regional Qld only all small customers can access all large customers with Ergon Energy Queensland (EEQ) EEQ receives a Community Service Obligation QCA sets prices under delegation from the Minister Delegation defines the Uniform Tariff Policy as: Wherever possible non-market customers of the same class should pay no more for their electricity regardless of geographic location; and The Government considers that regulated prices for regional Queensland for small customers should broadly reflect expected prices for customers on standing offers in SEQ

Proposed Notified Prices 3 Since Notified Prices set under an N + R approach Small customer tariffs T11, 20, 31, 33, 41 and 91 – based on Energex structure and rates T12A, 14, 22A and 24 – based on Ergon Energy’s structure but Energex’s cost levels Large customer tariffs T44, 45, 46, 47, 48, 50 and 71 based on Ergon Energy’s structure and Ergon Energy’s East transmission zone 1 rates Transitional tariffs T20L, 21, 22, 37, 62, 65 and 66 Not based on an N + R approach To be phased out no later than 30 June 2020