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 payments 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 25 February 2021, CitiPower, Powercor and United Energy Distribution (CPU) requested the AER to determine that the annual payments they make to Energy Safe Victoria (ESV) as required by section 8 of the Electricity Safety Act 1998 (Vic) are a jurisdictional scheme. On 26 February 2021, the AER published CPU's request letter and submission.
On 19 March 2021, the AER published its determination approving the proposed scheme as a jurisdictional scheme.
|AER - Determination on CPU jurisdictional scheme request - March 2021 ( PDF 354.61 KB )||AER|