Service target performance incentive scheme version 4 - December 2012 amendment

Sector: 
Segment: 
Status: 
Category: 
Service target performance incentive scheme
Date initiated: 
1 October 2011
Effective date: 
20 December 2012
AER reference: 
45236

Overview

On 20 December 2012, the AER published its final decision on a new electricity transmission service target performance incentive scheme (STPIS). The AER’s final decision is to amend the scheme to focus more on lead indicators of reliability, change the way performance against the market impact component is measured to improve consistency of performance and introduce a new network capability component to incentivise TNSPs to identify and implement low cost solutions to network limitations.

Background

The STPIS is a scheme established and amended by the AER which is designed to provide incentives for each TNSP to maintain or improve reliability of transmission network services at times most valued by customers and elements of the network most important to facilitating efficient wholesale electricity prices.

The STPIS review and the publication of the final decision has been conducted in accordance with clause 6A.7.4 of the Electricity Rules.