AusNet Services' cost allocation method (CAM) governs the manner in which AusNet Services is allowed to allocate costs to the transmission 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 transmission and other services that AusNet Services provides.
On 31 October 2015, when submitting its revenue proposal, AusNet Services submitted an amended CAM for approval. The new CAM reflects changes in AusNet Services’ organisational structure. Clause 6A.19.4(d) of the NER requires the AER to notify AusNet Services of its decision to approve or refuse a proposed CAM within 6 months of its submission. As the AER did not do so, AusNet Services’ amended CAM has been deemed to be approved through the operation of the Chapter 6A rules.