NSW Budget Changes Benefit Electricity Users

01 Jun 2001Archived News Climate Change Matters

In the recent Budget, the NSW Government lifted the Electricity Distributors Levy (EDL) which has raised $100 million per annum since it was introduced in 1997 to counter the losses generators were making in the newly deregulated market.


This EDL was set at $5.20/MWh (0.52 c/kWh), and its removal will result in significant savings to business.

At this stage, the levy has only been suspended, but the permanent abolition of the charge will be determined following a review of generator profitability, which is to be conducted prior to the 2003/04 budget.

The change will be passed through to customers from 1 July, and will be reflected in reduced network charges. However, as network charges for some NSW distributors will also be changing from 1 July, the final change in costs may vary slightly from $5.20/MWh. For example, the Independent Pricing and Regulatory Tribunal of NSW has directed EnergyAustralia to reduce its network tariffs by 8 percent from 1 July 2001, however the changes to network charges for other NSW distributors is not yet known.

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