On 21 December 2007, the AER decided to revoke and substitute EnergyAustralia's 2004/05 to 2008/09 revenue cap under clauses 6.2.4(d)(1) and (2) of the National Electricity Code (the Code).
The Australian Competition and Consumer Commission set the 2004/05 to 2008/09 revenue cap. EnergyAustralia requested the AER re-open this revenue cap in March 2007 on the grounds that there was a material error in setting its revenue cap.
The AER determined that there was an error in establishing EnergyAustralia’s cost of debt and had the material error not occurred the ACCC would have reached a different conclusion in setting the revenue cap. As such the AER considers it appropriate to revoke and substitute the revenue cap, in accordance with the provisions of the Code.