AER's decision on Ausgrid's proposal to amend its Tariff Structure Statement

In September 2019, Ausgrid submitted to the AER a proposal to amend its Tariff Structure Statement to introduce new tariffs for embedded networks. We have considered Ausgrid's proposal and sought feedback from stakeholders through a workshop we hosted in January 2020 and through written submissions. Our decision is to not approve Ausgrid's proposal.

The regulatory framework is designed to manage future expectations and provide stakeholders with a degree of certainty on network tariffs. Ausgrid has not demonstrated to us that the threshold to reopen its Tariff Structure Statement has been met. Therefore its current Tariff Structure Statement will continue to apply.

However, we consider the issue of how to efficiently price the provision of network services to embedded networks warrants further consideration in future processes. The information provided by Ausgrid and insights provided by other stakeholders during this process will assist us to consider this issue further in future five yearly Tariff Structure Statement processes.

Sector: 
Segment: 
Issued date: 
28 February 2020
AER reference: 
AC 24/20
Contact: 
AER General Inquiries AERInquiry@aer.gov.au