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Prudent discounts

In 2006 the Australian Energy Market Commission finalised its review of the transmission revenue and pricing provisions of chapter 6 of the National Electricity Rules (NER). Clause 6A.26.1 of the revised NER permits a transmission network service provider to recover the cost of a prudent discount from other transmission customers under some circumstances.

Clause 6A.26.2 of the NER permit a transmission network service provider to apply to the Australian Energy Regulator (AER) for approval to recover the proposed prudent discount (the proposed recovery amount).

 

Guidelines issued by the ACCC and endorsed by the AER

The ACCC released the Guidelines for the negotiation of discounted transmission charges in May 2002. In August 2005 the AER adopted the Guidelines for the negotiation of discounted transmission charges when it released its Compendium of electricity transmission regulatory guidelines. You may want to review these documents. 




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