Our approval role

The cost allocation method is a document published by a network service provider which sets out how it will split shared costs between the different categories of services that it provides.

Each service provider is responsible for developing its principles and policies for attributing costs and these must be outlined in cost allocation method document submitted to us for approval.

The AER is required to assess cost allocation methods to ensure that they are in accordance with the requirements of the National Electricity Law and Rules and are consistent with the AER's Cost allocation guidelines for tranmission or distribution.

View the guidelines for transmission

View the guidelines for distribution 

All historical cost allocation method assessments are archived and are available by request at aerinquiryataer [dot] gov [dot] au (aerinquiry[at]aer[dot]gov[dot]au)

Cost allocation method assessments

Results

Ausgrid - Cost allocation method 2022

Cost allocation methods
Electricity
Current

Transgrid - Cost Allocation Method 2023

Cost allocation methods
Electricity
Current
On 30 May 2023 TransGrid submitted an amended CAM for approval. The amended CAM reflects changes in TransGrid's ownership and organisational structure, and introduces a fourth category of service for NSW REZ projects (NSW EII non-contestable projects). We assessed TransGrid's proposed CAM amendments against the requirements of the National Electricity Rules and our Transmission Cost Allocation Guideline.

CitiPower, Powercor, United Energy - Cost Allocation Method 2020

Cost allocation methods
Electricity
Current

Jemena - Cost Allocation Method 2019

Cost allocation methods
Electricity
Open

AusNet Services (Distribution) - Cost allocation method 2019

Cost allocation methods
Electricity
Current

AusNet Services (Transmission) - Cost allocation method 2019

Cost allocation methods
Electricity
Current