Benchmark upstream augmentation charge rates for CitiPower's network

Date initiated: 
17 July 2009
Effective date: 
25 June 2010


On July 17 2009, the AER released a formal decision on CitiPower's capital contribution charge policy for recovering future upstream network augmentation costs. This decision follows a draft decision on "CitiPower's capital contribution charge for marginal cost of network reinforcement" published by the Essential Services Commission of Victoria (ESC) in December 2008.

The AER concluded that CitiPower's current charge rates for recovering future upstream network augmentation costs do not comply with Electricity Industry Guideline No.14 of the ESC because these rates do not take appropriate account of the timing of future augmentations. However, further consultation on the charging rates was undertaken as the AER did not receive sufficient information through the initial consultation process to form a final view on this matter.