Aurora Energy's cost allocation method (CAM) governs the manner in which Aurora Energy is allowed to allocate costs to the distribution services that it provides. The allocation of costs between the services is required to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between the distribution and other services that Aurora Energy provides.
On 18 March 2011 Tasmania's electricity distribution network service provider, Aurora Energy, approached the AER seeking to amend its CAM.The AER is required to approve or refuse to approve, Aurora Energy's proposed Amended CAM in accordance with the AER's Cost Allocation Guidelines.
Aurora Energy's current CAM was approved in May 2011 under chapter six of the National Electricity Rules. This cost allocation method replaces the CAM previously approved by the AER in June 2009.[no-lexicon]