In the AER's 2009 distribution determination for the NSW electricity distribution network service providers (DNSPs) the AER continued the D-factor scheme developed by IPART. The scheme allows the NSW DNSPs to recover costs and forgone revenues associated with demand management projects. The approved D-factors are inputs into the pricing proposals the NSW DNSPs submit to the AER by 1 May each year. The D-factor is calculated and added to the weighted average price cap (WAPC).
The AER received and reviewed D-factor submissions from Ausgrid and Endeavour Energy for 2011-12. We determined D-factors of 0.001 for Ausgrid and 0.000 for Endeavour Energy. Essential Energy did not make a claim and have no outstanding D-factor projects, and so its D-factor is 0.000.