United Energy's cost allocation method (CAM) governs the manner in which United Energy 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 United Energy provides.
United Energy submitted a revised CAM on 22 October 2014. United Energy state that the CAM was amended primarily to reflect changes to United Energy 's service classifications in the 2016—2020 regulatory control period to reflect the AER's Framework and Approach decision, dated 24 October 2014. This CAM is to apply from 1 January 2016. On 19 December 2014 the AER approved the amended CAM.