The AER creates, administers and maintains the service target performance incentive scheme (STPIS) in accordance with the requirements of the National Electricity Rules (Electricity Rules). The purpose of the STPIS is to provide incentives to transmission network service providers (TNSPs) to improve or maintain a high level of service for the benefit of participants in the National Electricity Market (NEM) and end users of electricity.
On 17 April 2025, the AER published the final STPIS version 6 for TNSPs and an accompanying explanatory document.
Our final positions are to:
- amend the loss of supply event frequency parameter of the Service Component
- suspend the Market Impact Component, and we will explore developing an effective alternative by establishing a working group with AEMO and key stakeholders, and
- amend the Network Capability Component to make it a more streamlined process.
This STPIS review and the publication of the final decision has been conducted in accordance with clause 6A.7.4 of the Electricity Rules. For details on the process and consultation in the lead up to the development of STPIS version 6, see our review webpage Review of electricity transmission service standards incentive schemes.