On 4 December 2013, the AER published its final position paper on the early application of version 4 of the electricity transmission service target performance scheme (STPIS). Following consideration of issues raised in submissions to the draft decision, we consider that the National Electricity Rules do not give us the discretion to apply an amended STPIS (or parts thereof)to a transmission business in their current regulatory control period.
The final position paper also sets out our preliminary position on the application of the STPIS to TransGrid and Transend during their transitional year. This preliminary position will assist in our preparation of the upcoming framework and approach paper for TransGrid and Transend. The framework and approach paper, as required under the transitional rules, will set out the modifications to be made to the application of the STPIS for the transitional regulatory control period for TransGrid and Transend.
In 20 December 2012, the AER finalised its review of the STPIS and published version 4 of the STPIS. The AER amended the existing service and market impact components and introduced a new network capability component to incentivise TNSPs to identify and implement low cost solutions to network limitations.
On 29 May 2013, the AER received a formal application from ElectraNet seeking early application of the network capability component of version 4 of the STPIS from 1 July 2014.
On 14 August 2013, the AER published its draft decision on the early application of version 4 of the STPIS. The draft decision also sets our proposed preliminary position on the application of the STPIS to TransGrid and Transend during their transitional year.