Powercor's cost allocation method (CAM) governs the manner in which Powercor is allowed to allocate costs to the distribution services that it provides. The allocation of costs between the services is requried to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between the distribution and other services that Powercor provides.
The assessment of Powercor's CAM was based on the advice of McGrathNicol Corporate Advisory. On 6 May 2010, the AER approved the CAM submitted by Powercor, concluding that it was consistent with the AER's Victorian Cost Allocation Guidelines and was in accordance with the requirements of the National Electricity Law and National Electricity Rules.
|Powercor - cost allocation method ( PDF 260.32 KB )||Powercor Australia|
|Powercor - cost allocation method - final decision ( PDF 113.76 KB )||AER|
|Powercor - review of cost allocation method - McGrathNicol ( PDF 303.63 KB )||McGrathNicol|