On 5 April 2018, and 11 April 2018 Ausgrid submitted to the AER an annual pricing proposal for its New South Wales distribution network for the period 1 July 2018 to 30 June 2019.
The AER and Ausgrid have developed a new enforceable undertaking which sets out how its revenues and network tariffs will be determined from 1 July 2018 to 30 June 2019. The enforceable undertaking also obliges Ausgrid to continue to provide network services consistent with the non-price terms and conditions of its 2015-19 electricity distribution determination. A similar approach was undertaken for the period 1 July 2016 to 30 June 2017 and 1 July 2017 to 30 June 2018.
Ausgrid offers the enforceable undertaking because in February 2016 the Australian Competition Tribunal set aside the AER’s May 2015 distribution determination decision for Ausgrid. Subsequently, the AER sought judicial review of the Australian Competition Tribunal decision in the Full Federal Court of Australia and the decision has been remitted to the AER to re-make. An enforceable undertaking can set out placeholder arrangements that provide transparency and certainty over network tariffs, on an interim basis, until the allowed revenue that Ausgrid may ultimately recover from customers is determined through the appeals process.
The AER's approach to establishing new interim arrangements through entering into new enforceable undertakings with the ACT and NSW electricity distributors was set out in an open letter published on the AER's website in March 2018.
The AER will now assess Ausgrid’s pricing proposal for compliance with its enforceable undertaking and its approved 2017-19 Tariff Structure Statement.
Decision
On 18 May 2018, the AER published the approved Ausgrid's 2018-19 pricing proposal.