A distribution network service provider (DNSP) may request the AER to determine whether a scheme is a jurisdictional scheme. Approval of a scheme as a jurisdictional scheme allows a DNSP to adjust prices through its annual pricing proposal to account for any under or over recovery in payment amounts associated with the scheme. This removes the need for the actual payment amounts to be considered under the distribution determination process and also removes the need for adjustments for any under or over recovery to be considered under the cost pass through process.
To make this request, the DNSP must submit to the AER a statement that includes an explanation of how the relevant scheme meets the jurisdictional scheme eligibility criteria. The AER must publish this statement and make a determination on whether a scheme is a jurisdictional scheme.
On 6 January 2014, ActewAGL requested the AER to determine that the Energy Industry Levy, the Utilities Network Facilities Tax and the Feed-in Tariff (Large-scale) are jurisdictional schemes. On 8 January 2014, the AER published ActewAGL's request letter and accompanying submission.
On 29 January 2014, the AER published its determination approving the proposed schemes as jurisdictional schemes.