Pricing methodology guidelines 2014

The Australian Energy Regulator (AER) is responsible for regulating the revenues and approving the pricing methodologies of transmission network service providers (TNSPs) in accordance with the National Electricity Rules (NER).

The NER requires a TNSP to submit, and the AER to assess, a proposed pricing methodology against the pricing principles in the NER and new pricing guidelines to be determined by the AER by 31 October 2007.  Since SP AusNet, VENCorp and ElectraNet (the relevant providers) will be required to submit their next revenue and pricing proposals prior to this date, rule 11.8 of the NER requires the AER to develop transitional pricing arrangements, which are referred to as the 'agreed transitional arrangements', in consultation with the relevant providers to give effect to the process by which the AER will assess a relevant provider's pricing methodology.

The AER has issued the agreed interim requirements, together with an explanatory statement, for SP AusNet, VENCorp and ElectraNet that will apply to their 2007 reset processes, in accordance with rule 11.8 of the NER.