The 9 cents FIT is energy component only. The ~30c includes the energy component, network costs, retailer margin, metering charges and other service related costs. One can’t compare a FIT with tarriff 11 as it isn’t comparing apples with apples.
To see what charges other than energy are included when consuming electricity from the grid, one just has to look at one’s power bill.
The retailer only keeps their retail margin. Network costs charged to tbe consumer goes back to the regulator and used to pay for the augnmentation, operations and maintenance of the existing network, the energy component goes to the generator, the metering charges goes to the metering company, the GST to the Commonwealth government etc.
The 9 cents FIT correlates to a average energy market pool price of $90/MWh. The 2017 average pool price for Queensland was in the order of $93/MWh, whilst 2018 price was around $73. The 2019 price is tracking around $80/MWh. These figures indicate that the FIT is possibly a little more generous than past pool prices received by other generators with exception of 2019.
The FIT is based on the average pool price and not what a retail customer pays. The reason for this is traditionally the consumer pays for the use of the network, their metering costs and also other service/electricity delivery charges. When exporting to the network/grid, the FIT treats a amall scale PV generator no differently to other generators on the network…that being they don’t pay network charges as it is the consumer which traditionally has done this. This is the reason why the comment about the hypothetical small scale solar generator charge by ENA changes the current rules was made.
Highly possible or used by a consumer in that part of the distribution network which your house resides.
The consumer of the solar feedin would be paying the current tariff rate for the power they use which includes the costs as outlined above.
A flat system of network charges is used as one would otherwise argue that if they lived next to a power station, their network charges (proportional network costs) would be negligible or almost zero. Others at the end of the network (say at the end of a rural swer line) would be proportionally responsible for all changes between their residence and the generators connected to the grid…which would be excessively expensive for these users.
The system assumes that the whole of the neteork is needed by all to provide and maintain reliable power, thus costs associated with the delivery of the energy should be spread across all consumers. This is a reasonable assumption and a fair system.
The network operators (distribution and transmission) already receive all the monies collected. The monies are returned to the regulatory who then distribute it back to the operators based on their approved revenue resets (5 years costs for the operation, maintenance and augnmentation of the grid).
The only way for more money to go to the network operators would be for the retailer to collect additional money and pass it directly to the network operator. I am sure that both politically it would be unpalatable and would also go against the current legislated and regulated costing regimes.
