The Australian Energy Regulator (AER) has made a final decision on the Australian Energy Market Operator’s (AEMO) transmission services in Victoria for the next regulatory control period from 1 July 2022 to 30 June 2027.
Our final decision accepts AEMO’s revised pricing methodology as it is consistent with the requirements set out in the national electricity law and rules. Our final decision also sets out the principles and framework AEMO must use when providing negotiated transmission services to customers.
Unlike our other determinations, we are not required to make a revenue determination for AEMO, but our decision provides clear guidance on how AEMO must consider and ensure that consumers pay no more than necessary for transmission services.
In addition, we have published an Explanatory Statement on the approach to transmission charges for energy storage.
This statement is designed to provide greater clarity of transmission charging arrangements in response to stakeholder feedback during our consultation on AEMO’s pricing methodology.