SP AusNet - Cost allocation method 2010 (Distribution)

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Commencement date: 
30 September 2009
Effective date: 
17 December 2010

Overview

SP AusNet's cost allocation method (CAM) governs the manner in which SP AusNet is allowed to allocate costs to the distribution services that it provides. The allocation of costs between the services is requried to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between the distribution and other services that SP AusNet provides.

The assessment of SP AusNet's CAM was based on the advice of McGrathNicol Corporate Advisory. On 17 December 2010, the AER approved the CAM submitted by SP AusNet, concluding that it was consistent with the AER's Victorian Cost Allocation Guidelines and was in accordance with the requirements of the National Electricity Law and National Electricity Rules.