Powerlink's cost allocation method (CAM) governs the manner in which Powerlink is allowed to allocate costs to the transmission services that it provides. The allocation of costs between the services is requried to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between the transmission and other services that Powerlink provides.
The assessment of Powerlink's CAM was based on the advice of McGrathNicol Corporate Advisory. On 29 August 2008, the AER approved Powerlink's CAM in accordance with chapter 6A of the National Electricity Rules, concluding that it was consistent with the AER's Cost Allocation Guidelines.