TransGrid - Cost allocation method 2017

Commencement date: 
14 December 2016
Effective date: 
27 January 2017
AER reference: 


TransGrid’s cost allocation methodology (CAM) governs the manner in which TransGrid is allowed to allocate costs to the transmission 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 transmission services and other services TransGrid provides.

On 14 December 2016 TransGrid submitted an amended CAM for approval. The amended CAM reflects changes in TransGrid’s organisational structure. We assessed TransGrid’s proposed CAM amendments against the requirements of the National Electricity Rules and our Transmission Cost Allocation Guideline. On 27 January 2017 we approved TransGrid’s CAM amendments dated 14 December 2016. Details of our assessment are set out in the AER decision paper.