Energex - Cost Allocation Method 2018

Commencement date: 
18 October 2018
Effective date: 
1 December 2018
AER reference: 


The cost allocation method (CAM) governs the manner in which Energex is allowed to allocate costs to the distribution services it provides. Allocation of costs between services is required to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between regulated distribution services and other services that Energex provides.

On 18 October 2018 Energex applied to amend its CAM mainly to reflect its new corporate structure effective from 1 December 2018. Energex also submitted a combined Ergon Energy and Energex CAM to be effective from 1 July 2020, the next regulatory control period. We assessed both proposed CAMs against the requirements of the National Electricity Rules and the AER’s Cost Allocation Guideline. We approved Energex’s CAMs and the details of our assessment are set out in the AER decision paper.