Pass-through and revenue cap re-openers - position paper

On 21 December 2005 the AER released a position paper on pass-throughs and revenue cap re-openers in order to clarify its position for the Powerlink review process. That paper considered approaches available to the AER to vary a transmission network service provider’s (TNSP’s) revenue cap allowance within a regulatory period in response to exogenous events. In the position paper, the AER indicates a preference for replacing the revenue cap re-opener provisions specified in the Statement of Regulatory Principles with pass-through arrangements.

The Australian Energy Market Commission (AEMC) has now released its Draft National Electricity Amendment Rule in which the AEMC proposes to adopt substantially the same pass-through categories as set out in the AER discussion paper.

Therefore, the AER proposes to suspend its consideration of this matter, subject to any variation in the Final Amendment Rule.

Issued date: 
22 February 2006
AER reference: 
AC 007/05