Ausgrid's cost allocation method (CAM) governs the manner in which Ausgrid is allowed to allocate costs to the distribution services it provides. Allocation of costs between services is required to accurately represent costs incurred in providing the respective services. This prevents cross-subsidisation between distribution services and other services Ausgrid provides.
On 14 March 2025 the AER approved the revised CAM submitted by Ausgrid in accordance with chapter 6 of the National Electricity Rules and chapter 6A of the Electricity Infrastructure Investment Act 2020 (NSW). The revised CAM reflects changes to Ausgrid's organisational structure and introduces a separate category of service for NSW REZ projects, called EII regulated activities. Its revised CAM replaces Ausgrid’s previous CAM approved by the AER in 2022.