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 required to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between the distribution and other services that Powercor provides.
Powercor applied to amend its CAM on 23 April 2014. The amendment principally relates to a change in capitalisation policy and updates to address the service classifications which are to apply in the next regulatory control period. It was approved on 17 October 2014 and will take effect from 1 January 2016.