The EVC is concerned that the current N+R cost buildup methodology for regional Queensland electricity pricing is too rigid and no longer suitable for the modern market. The EVC recommends either revisiting the methodology with the Minister for more flexibility or advocating for legislative changes to adopt a more appropriate tariff structure. Key points include:
- Time-of-use (TOU) tariffs: The EVC highlights the effectiveness of TOU tariffs in shifting EV and consumer load out of peak times, saving costs, and supporting the network. For example, Queensland Ovoenergy customers on EV TOU tariffs consumed 70% less electricity during peak times compared to other tariffs on record peak demand day (January 22, 2024).
- Limited TOU options: Regional Queensland currently offers fewer and more expensive TOU tariff options compared to SE Queensland (e.g., Ovoenergy's $0.08/kWh midnight-6am and $0/kWh 11am-2pm plans). This disparity is detrimental to EV adoption, as illustrated by an Uber driver in Toowoomba, where annual charging costs reach $3600 on tariff 12B (30c/kWh), compared to $960 in Brisbane with Ovoenergy (8c/kWh).
- N+R framework limitations: The QCA's reliance on network tariff structures (9am-4pm, 4pm-9pm, 9pm-9am charging windows and prices) as a basis for retail tariffs is deemed inappropriate for modern market needs. The EVC argues this framework requires reassessment due to its inflexibility and infrequent regulatory resets (every 5 years).
- Recommendations: The EVC calls on the QCA to either request flexibility from the Minister for a less rigid N+R methodology or propose legislative changes to align with uniform tariff policies. Additionally, the EVC suggests conducting future consultations outside holiday periods to ensure broader stakeholder input.
