Type
Compliance reports
Sector
Electricity
Segment
Distribution
Categories
Consumer outcomes
Entities
Essential Energy - electricity distribution network
Release date
Related provisions

Rule 6.6.4 of the National Electricity Rules (NER) permits the AER to develop and publish a ‘small scale incentive scheme’ to provide DNSPs with incentives to provide services in a manner that contributes to the achievement of the National Energy Objectives (NEO). 

Customer Service Incentive Scheme (CSIS) Clause 4.2(1) and (2) provide that transitional issues may arise from one regulatory control period to the next regulatory control period if the scheme’s parameters or other attributes are altered or the scheme is discontinued, and that the AER will give consideration to an arrangement proposed under this scheme that reduces the impact of any transitional issues.

Outcome

The AER considers Essential Energy’s proposal meets the relevant criteria for the AER to approve the transitional arrangement as appropriate under clause 4.2 of the CSIS.

On 30 April 2024, the AER applied a Customer Service Incentive Scheme (CSIS) to Essential Energy. The CSIS has been applied to Essential Energy for the 2024-29 regulatory control period.

On 12 March 2025, Essential Energy submitted a proposal to the AER for a transitional arrangement to apply to its CSIS for the 2025-29 regulatory years.

In accordance with clause 4.2 of the CSIS, the AER approved Essential Energy’s proposed transitional arrangement to the 2025-29 regulatory years, and suspended the impacted parameter for the 2024-25 regulatory year. 

Documents

AER decision - Essential Energy 2025-2029 CSIS transitional arrangement and 2024-25 CSIS suspension - November 2025
PDF (253.95KB) View details

Authors
AER
Document