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Each year, the Regulator sets the minimum feed-in tariff (FiT) rate that we as retailers must pay regulated residential and small business customers for any on-site generation they export to the electricity grid, after off-setting against their own electricity consumption.
The Regulator is independent from Aurora Energy and the Tasmanian Government, and undertakes an in-depth pricing investigation to determine the regulated FiT rate. The most significant factor in setting the FiT rate is the wholesale price energy retailers, like us at Aurora Energy, pay to purchase energy from electricity generators.
Generally, if the wholesale energy price goes up, the FiT rate set by the regulator will also go up, and in turn, if the wholesale energy price goes down so too does the FiT rate.
If you’d like to learn more about how the Regulator sets the feed-in tariff visit their website.