ActewAGL - Letter to AER advising on dual function assets - 30 June 2012

The National Electricity Rules state the framework and approach paper must include the AER’s determination under clause 6.25(b) as to whether or not Part J of chapter 6A is to be applied to determine the pricing of any transmission standard control services provided by any dual function assets owned, controlled or operated by a distribution network service provider (DNSP).

The preliminary framework and approach paper for ActewAGL (the paper), released by the AER in June 2012, did not include information on the value of ActewAGL’s dual function assets. At the time of finalising the paper the AER had not received such information from ActewAGL. Therefore, the paper included an undertaking by the AER to publish any such information and seek submissions prior to releasing its final framework and approach paper (p. 84).

On the basis of information provided by ActewAGL, the AER proposes to include in its final framework and approach its determination that chapter 6A, transmission pricing, will apply to ActewAGL’s dual function assets.