On 30 July 2008, the Australian Energy Regulator (AER) held a NSW public forum for interested parties on the revenue proposal submitted by TransGrid and the regulatory proposals submitted by EnergyAustralia, Integral Energy and Country Energy. The public forum gave businesses an opportunity to explain their proposals and interested parties were able to ask questions. The agenda, minutes and slides from the public forum are attached below.
Determination Process
An indicative timetable showing the key milestones for the transmission and distribution determination process is set out below.
Receive Transgrid’s revenue proposal—31 May 2008
Receive regulatory proposals from NSW DNSPs—2 June 2008
Public forum on Transgrid’s and NSW DNSPs' regulatory proposals—30 July 2008
Submissions close on the regulatory proposals—8 August 2008
Release the AER’s draft decision and consultant’s report*—November 2008
Public forum on the AER’s draft decision—December 2008
DNSPs and TransGrid may lodge revised regulatory proposals—January 2009
Submissions close on the draft decision, revised regulatory proposals and consultant’s report—February 2009
Release the AER’s final decision—April 2009
*The AER has engaged consultants to assist with reviewing TransGrid’s and the NSW DNSPs regulatory proposals.
Background
On 1 January 2008 the AER commenced economic regulation of electricity distribution networks.
The AER is required under the transitional provisions of Chapter 11 of the National Electricity Rules (the transitional chapter 6 rules) to make a distribution determination for NSW DNSPs in relation to their respective electricity distribution networks. The determination will establish network charges for the period 2009-2014.
In 2005, the Australian Competition and Consumer Commission (ACCC) determined TransGrid’s revenue cap for a five year period from 1 July 2004 to 30 June 2009. A copy of this revenue cap decision is available on the AER’s website.
Chapter 6A of the National Electricity Rules (NER) took effect on 16 November 2006. Clause 6A.2.2 of the NER sets out the components of a transmission determination, which include a revenue determination, negotiating framework determination, negotiated transmission service criteria determination and pricing methodology determination for the transmission network service provider. The AER must make a transmission determination for TransGrid in accordance with chapter 6A and the AER’s transmission guidelines. The determination will establish network charges for the period 2009–2014.
