ETSA Utilities' cost allocation method (CAM) governs the manner in which ETSA Utilities 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 ETSA Utilities provides.
On 14 October 2011, ETSA Utilities approached the AER seeking to amend its CAM. The AER is required to approve or refuse to approve the proposed Amended CAM in accordance with the AER's Cost Allocation Guidelines.
ETSA Utilities' current CAM was approved in December 2011 under chapter six of the National Electricity Rules. This cost allocation method replaces the CAM previously approved by the AER in February 2009.