United Energy - AMI transition charges 2018

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Commencement date: 
31 May 2016
Effective date: 
1 January 2018
AER reference: 
59278

Overview

On 16 December 2016, we released our final decision on United Energy's Advanced Metering Infrastructure (AMI) Transition Charges Application. The transition charge is a true up between costs and revenues over the Victorian AMI roll–out period from 1 January 2009 to 31 December 2015. This is achieved through an adjustment to the revenue for metering services for the current 2016–2020 regulatory control period for Victoria. Our final decision results in a decrease in revenue to be returned to customers through lower charges in 2018.

Our final decision follows on from the transition charges application we received from United Energy on 31 May 2016 and the draft decision we published on 20 September 2016.

Background

The process for assessing a transition charges application is set out in the AMI Order in Council made under the Electricity Industry Act 2000 (Vic). In particular, United Energy's application is made under clause 5L of the Order.

A transition charge, if approved, is a 'true up' mechanism that corrects for the difference between United Energy's approved AMI costs over the 2009–15 period and its actual revenues from AMI charges.