Energex's cost allocation method (CAM) governs the manner in which Energex is allowed to allocate costs to the services it provides. Allocation of costs between services is required to accurately represent costs incurred in providing the respective services. This prevents cross-subsidisation between distribution services and other services Energex provides.
On 24 July 2014, the AER approved CAM submitted by Energex in accordance with chapter six of the National Electricity Rules. Energex's CAM replaces its previous CAM approved by the AER. Energex's previous CAM was prepared and approved by the AER under transitional arrangements which expire at the end of the 2010-15 regulatory control period.
Energex submitted its revised CAM for approval ahead of the upcoming regulatory control period, so its regulatory proposal for the new control period may be prepared accordingly.