Shadow Network Charges. These may also be called Pass through Charges.
If you wish to choose another retailer, you will continue to receive bills from Veeve for Shadow Network Charges, as well as one from your New Energy supplier for your Energy Only Contract.
Shadow pricing for Network Charges are regulated by the Australian Energy Regulator (AER). The AER regularly review & approve the electricity distribution network charges. These include, (but not limited to) the charges to Business and Household customers; identified as Tariff Structure Statement (TSS) and the revenue required to provided efficient & reliable distribution service; identified as Electricity Distribution Price Review (EDPR). Amounts may vary from area to area. The flow on effect from this is that one area may have higher Distribution Network Costs than another, this will be reflected in the customers bill.
You will not be charged more than the default energy retailer for your area. The charges we pass onto you are exactly the costs we are charged by the distributor.
Electricity distributors own and manage the power poles and wires which deliver power to homes and businesses across the state. Your electricity distributor depends on where you live - you cannot choose your distribution company.
Generally speaking, the two main areas of charges are:
Retail Component - This is the cost of Purchasing the Energy.
Network Component - This area can be broken down further.
These costs represent the cost component which is referred to as Network Use of System (NUOS).
The Network Use of System has two main area’s;
• Standard Distribution of Use (DUOS)
• Transmission Use of System (TUOS)
DUOS relates to the operation & maintenance costs. Including but not limited to assets such as Distribution Lines & transformers and Substations.
TUOS relates to the transmission of power, poles/lines/towers etc.
Other costs, include for example: Government compliance costs.
More information regarding, ‘Who you purchase energy from’ can be found on the AER Website https://www.aer.gov.au/consumers/information-for-electricity-customers-in-embedded-networks