AER issues final decision on VENCorp transmission determination

The Australian Energy Regulator today issued its final decision on the transmission determination applicable to the Victorian Energy Networks Corporation (VENCorp) for the regulatory period 1 July 2008 to 30 June 2014.

The AER's decision sets maximum revenues of $2 866.46m for VENCorp for the forthcoming six-year regulatory period, and provides for over $200m of new investment in network growth over the next six years. This will assist VENCorp to manage cost pressures and meet emerging system constraints.

The AER's final decision also includes determinations on a pricing methodology for prescribed services, and a framework and criteria for negotiated services.

Excluding the impact of settlement residues received by VENCorp, this final decision is expected to result in an average annual increase of 4.63 per cent to nominal transmission charges, from $7.50/Mwh in 2007-08 to $9.84/Mwh in 2014.

For a typical customer, these increases in transmission charges mean that a small residential annual bill would be expected to increase, in nominal terms, from $1, 200 in 2007-08 to $1, 411 in 2013-14. This represents an average annual nominal increase of 2.74 per cent (0.15 per cent real). Note this estimate is illustrative only: to highlight the impact of the change in transmission charges, it has been assumed that non-transmission costs increase only by inflation.


The Australian Energy Regulator is responsible for the economic regulation of monopoly transmission services in the National Electricity Market. These functions are conferred on the AER by the National Electricity Law and the National Electricity Rules.

The AER must make transmission determinations for Transmission Network Service Providers in accordance with the NER in respect of prescribed and negotiated transmission services.

The AER's draft decision on the transmission determination for VENCorp for the forthcoming 1 July 2008 to 30 June 2014 regulatory control period was issued on 30 November 2007.

Issued date: 
14 April 2008
AER reference: 
NR 006/08
Steve Edwell, AER Chairman 03 9290 1421 0423 047 554
Lin Enright, Media 02 6243 1108 0414 613 520
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