New South Wales
Australian Capital Territory
South Australia
Date initiated
Effective date
Date completed
Service target performance incentive scheme
AER reference

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 September 2015, the AER published the final service target performance incentive scheme (STPIS) version 5 for TNSPs and accompanying explanatory final decision document. The AER's final decision is to amend the scheme to ensure it continues to provide value for money by introducing financial incentives for forced outage service component sub parameters, making the market impact component symmetrical by providing a reward/penalty of ±1 per cent of maximum allowed revenue and for the network capability component, pro rating the annual financial incentive payments to the annual average cost of the approved projects and strengthening the ex-post assessment of projects.

Since the publication of the final STPIS version 5 on 17 September 2015, the AER has identified that there was a error in the drafting of exclusion clause 3 of the market impact component. On 1 October 2015, the AER published a corrected version of the final STPIS version 5 which corrects this drafting error.

This STPIS review and the publication of the final decision has been conducted in accordance with clause 6A.7.4 of the Electricity Rules.

On 6 April 2023, the AER published a guidance note to provide information on our assessment of the market impact component (MIC) parameters for applying version 5 of the STPIS to TNSPs. This guidance note has been prepared in accordance with clause 6A.2.3 of the National Electricity Rules.

The purpose of this guidance note is to provide clarification on:

  • the data period used in calculating the MIC performance target
  • how MIC exclusions 1 and 6 are to be applied to certain MIC counts in the scheme.