Recent trends in revenue and demand
Aurora Energy’s revenue from distribution line charges has increased over recent years. Revenue from line charges, which made up most of Aurora Energy’s revenue, increased by around 3% from 2008 to 2011, over and above inflation. Distribution line charge revenue from residential and smaller commercial customers stayed flat, but increased for medium-sized customers by around 20%. Most of Aurora Energy’s revenue is collected from residential and smaller commercial customers.
Aurora Energy’s revenue growth is due to a decrease in demand, but some this was partially offset by price increases.
The average price change varied across customers:
- The average price per small customer connection increased around 3%. The average price per unit of electricity delivered to a small customer increased around 5%.
- The average price per medium-sized customer connection increased around 12%. The average price per unit of electricity delivered to a medium-sized customer increased around 20%.
Overall demand growth on Aurora Energy’s network was mixed. The number of small customer connections fell slightly as did electricity consumption. The number of medium-sized customer connections grew around 10%. Medium-sized customers increased their electricity consumption 2%.
Recent trends in expenditure
Total operating expenditure decreased 1% per year after controlling for inflation. Less than half of total operating expenditure was directly related to the network.
Capital expenditure increased faster than the size of Aurora Energy’s business in recent years. In 2011 most capital expenditure went towards asset replacement and renewal and system growth.
Network operating expenditure is forecast to increase over the coming years.
Network capital expenditure is forecast to increase over the coming years. Each forecast round predicts different trends in capital expenditure. This may reflect changes in actual business need, the uncertainty of scheduling projects in future periods, and the opportunity to update forecasts in its Asset Management Plan annually.
Recent trends in service reliability
The average duration of interruptions on Aurora’s network was above the regulatory limit in 2008 and 2011. The average frequency of interruptions was below the regulatory limit. Aurora Energy’s average duration and frequency of interruptions was below the industry average.
Full analysis
The full analysis of Aurora Energy Limited's performance from 2008 to 2011 can be downloaded below.
All dollar figures in our analysis are adjusted for inflation and expressed in 2011 dollars.
