United Energy - Cost allocation method 2010

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Commencement date: 
22 August 2009
Effective date: 
18 June 2010

Overview

United Energy's cost allocation method (CAM) governs the manner in which United Energy 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 United Energy provides.

The assessment of United Energy's CAM was based on the advice of McGrathNicol Corporate Advisory. On 18 June 2010, the AER approved the CAM submitted by United Energy, 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.