New South Wales Electricity Infrastructure Investment Act - Jurisdictional scheme application

Sector: 
Segment: 
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Category: 
Jurisdictional scheme
Contact: 
AER General Inquiries AERInquiry@aer.gov.au

Overview

On 11 November 2021, the NSW Department of Planning, Industry and Environment (DPIE) lodged an application for the AER to determine that the scheme established by Part 7 of the Act is a jurisdictional scheme under clause 6.18.7A of the NER.

The Australian Energy Regulator (AER) has the role of determining where a scheme is a jurisdictional scheme under the National Electricity Rules (NER).

Under the NER, jurisdictional scheme costs are a direct passthrough to customers via the Distribution Network Service Providers (DNSPs) annual network charges.

As the DNSP has no control over the costs, approval of a scheme as a jurisdictional scheme reduces the steps a DNSP needs to undergo to recover the actual costs associated with a jurisdictional scheme obligation. The DNSP can recover both the scheme's costs and any under/over cost recovery through an annual pricing review, rather than seeking an allowance for the scheme's costs at each regulatory determination and applying to us to pass through any under/over recovery of costs.

In this particular case, the jurisdictional scheme would allow for the costs associated with the Electricity Infrastructure Investment Act 2020 (NSW) (the Act), which implements NSW’s Electricity Infrastructure Roadmap, to be recovered through DNSPs via the annual pricing review process. Where a scheme meets the eligibility criteria set out in sub-clause 6.18.7A(x) of the NER, the AER must determine that the scheme is a jurisdictional scheme and has no discretion to decide otherwise.

The NER require the AER to publish the application received and to make a determination on the application within 20 business days of receipt. The AER will publish the determination once it has been made.