TransGrid's cost allocation methodology (CAM) governs the manner in which TransGrid is allowed to allocate costs to the transmission services it provides. Allocation of costs between services is required to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between transmission services and other services TransGrid provides.
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.
On 5 June 2023 the AER approved TransGrid's CAM amendments dated 30 May 2023. Details of our assessment are set out in the decision paper.