On 21 March 2007, the Commission received a Rule change proposal from EnergyAustralia. The proposal sought the option for a Distribution Network Service Provider (DNSP) to apply to the Australian Energy Regulator (AER) to have assets that are owed and operated by a distribution network, but are defined as transmission network, subject to the same revenue regulation arrangements as the distribution network. In addition, the proposal sought to confer on the regulator the discretion to determine whether assets forming part of the transmission network and approved for regulation under the rules for distribution should be priced separately under the transmission pricing regime. EnergyAustralia also requested the Rule making process be expedited under section 96 of the National Electricity Law (NEL).
On 5 April 2007 the AEMC published a notice commencing initial consultation on a Rule change proposal submitted by EnergyAustralia. Under the Rule change proposal, a DNSP may apply to the AER to have certain transmission services treated as distribution services for the purposes of determining revenue requirements.
On 4 May 2007, we provided a submission to the AEMC in response to the proposed rule change.