Transend - Cost allocation method 2008

Commencement date: 
28 March 2008
Effective date: 
9 May 2008


Transend's cost allocation method (CAM) governs the manner in which Transend is allowed to allocate costs to the transmission 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 transmission and other services that Transend provides.

On 9 May 2008, the AER approved Transend's CAM in accordance with chapter 6A of the National Electricity Rules, concluding that it was consistent with the AER's Cost Allocation Guidelines.

The assessment of Transend's CAM was based on the advice of McGrathNicol Corporate Advisory.