The AER's role in Victoria for electricity distribution

The Victorian government has conferred economic regulatory duties, functions and powers on the AER from 1 January 2009, prior to the AER’s first distribution determination for Victorian DNSPs, which will apply from 1 January 2011. 

This will mean that from 1 January 2009, the AER will administer the current economic regulatory framework for electricity distribution previously administered by the ESCV, which will include functions as specified in the National Electricity (Victoria) Act 2005 (NEVA) that relate to economic regulation of electricity distribution under:

• the Essential Services Commission Act 2001
• the Electricity Industry Act 2000
• any regulation made under the Essential Services Commission Act 2001 or the Electricity Industry Act 2000
• the Tariff Order
• an Advanced Metering Infrastructure (AMI) Order
• other orders made under the Electricity Industry Act 2000
• the 2006–2010 distribution pricing determination
• a distribution licence
• relevant codes or guidelines made by the ESCV.

Further information about these instruments is available on the ESCV website.

A number of functions will not be conferred upon the AER and instead be retained by the ESCV. These include:

• responsibility for regulation of electricity retail businesses
• granting, varying and transferring licences of Victorian DNSPs
• recovering DNSPs licensing fees
• making or amending regulatory codes and guidelines

For further information about the AER’s role in electricity distribution, please address any queries to the ACCC Infocentre on 1300 302 502.