Electricity report shows strong transmission investment

The Australian Energy Regulator today released its first electricity regulatory report covering transmission network service providers in the National Electricity Market.

The report provides revenue, profit, expenditure and service standards information on each of the transmission businesses for the 2004/05 reporting year. The businesses covered are ElectraNet, EnergyAustralia, Murraylink, Powerlink, SPI PowerNet, Transend, TransGrid and VENCorp.

"The report aims to provide transparency about the financial and operational performance of the transmission businesses", AER Chairman, Mr Steve Edwell, said. "It builds on work undertaken by the Australian Competition and Consumer Commission in two previous reports".

Mr Edwell said three main trends are now emerging.

"First, capital expenditure is relatively high. Total expenditure over the three years reported on was more than $1.6 billion, adding around 12 per cent to the aggregate value of the transmission businesses' regulated assets.

"Second, service standards are improving, with most transmission businesses outperforming against their historic performance. The businesses have been rewarded with service standards incentive payments totalling around $4.5 million in the 2004 calendar year.

"Third, profit performance is improving, with total operating profit increasing by more than 9 per cent in 2004/05.

"Overall, these trends are encouraging", Mr Edwell said. "The AER's report suggests that the transmission businesses have responded appropriately to increases in summer peak demand. Further, solid investment and service standards results are being achieved with relative price stability".

In publishing the report, the AER took into account confidentiality considerations and comments from the transmission networks.

Issued date: 
3 April 2006
AER reference: 
NR 003/06
Steve Edwell, AER Chairman 03 9290 1421 0423 047 554
Brent Rebecca, Media 02 6213 1317 0408 995 408
Infocentre general enquiries 1300 302 502 AERInquiry@aer.gov.au