AER approves SA Power Networks jurisdictional scheme application

The AER has approved SA Power Networks’ jurisdictional scheme application under the National Electricity Rules (NER).

The scheme establishes a licensing condition for SA Power Networks to procure ‘designated services’ from the Torrens Island Power Station, and pay the operators of the station (AGL SA Generation Pty Ltd) $6.5 million per year for these services, until 30 June 2026.

The AER must assess all requests for jurisdictional schemes under the NER. Following review of the request, the AER determined the scheme meets the eligibility the criteria and is therefore a jurisdictional scheme under the NER.

The determination can be accessed here (insert link to page).

Background

A distribution network service provider (DNSP) may request the AER to determine whether a scheme is a jurisdictional scheme. Approval of a scheme as a jurisdictional scheme allows a DNSP to adjust prices through its annual pricing proposal to account for any under or over recovery in payment amounts associated with the scheme. This removes the need for the actual payments to be considered under the distribution determination process and also removes the need for adjustments for any under or over recovery to be considered under the cost pass through process.

To make this request, the DNSP must submit to the AER a statement that includes an explanation of how the relevant scheme meets the jurisdictional scheme eligibility criteria. The AER must publish this statement and make a determination on whether a scheme is a jurisdictional scheme.

Sector: 
Segment: 
Issued date: 
24 January 2023
AER reference: 
AC 02/23
Contact: 
AER General Inquiries AERInquiry@aer.gov.au