Service target performance incentive scheme version 4.1 - September 2014 amendment

Service target performance incentive scheme
Date completed: 
17 September 2014
Date initiated: 
28 May 2014
Effective date: 
17 September 2014
AER reference: 


On 17 September 2014 the Australian Energy Regulator (AER) made its final decision to amend the service target performance incentive scheme (STPIS) for transmission network service providers (TNSPs).

The AER creates, administers and maintains the STPIS in accordance with the requirements of the National Electricity Rules (Electricity Rules). The purpose of the STPIS is to provide incentives to TNSPs to improve or maintain a high level of service for the benefit of participants in the National Electricity Market (NEM) and end users of electricity.

From 1 July 2015, Directlink will be subject to the service and market impact components of the STPIS. This is the first time Directlink will be assessed under the STPIS, as it is currently assessed under the ACCC service standards guidelines for the 2006–2015 regulatory period.

The AER reviewed the applicability of Version 4 of the STPIS to Directlink, particularly in light of exceptional outages of its equipment in 2012. Consequently the AER recognised that an amendment to the scheme was warranted to specifically address the Directlink situation.  Directlink was the only respondent to the AER’s consultation on the proposed amendment. Directlink was supportive of the change.

The changes made to STPIS version 4 (December 2012) to create this version (version 4.1) relate only to Directlink, and do not affect other TNSPs.

February 2016 update - Decision on Directlink fire excluded period

On 1 February 2016 the AER made a decision regarding the return to normal service date for Directlink under clause 4.2(f) of STPIS version 4.1.