A distribution network service provider (DNSP) may request the AER to determine whether a scheme is a jurisdictional scheme. Approval of a scheme as a jurisdictional scheme allows a DNSP to adjust prices through its annual pricing proposal to account for any under or over recovery in payment amounts associated with the scheme. This removes the need for the actual payments to be considered under the distribution determination process and also removes the need for adjustments for any under or over recovery to be considered under the cost pass through process.
To make this request, the DNSP must submit to the AER a statement that includes an explanation of how the relevant scheme meets the jurisdictional scheme eligibility criteria. The AER must publish this statement and make a determination on whether a scheme is a jurisdictional scheme.
On 24 June 2024, Jemena Electricity Networks (Jemena) on behalf of the Victorian DNSPs requested the AER to determine that the annual payments they make to Essential Service Commission Victoria (ESC) as required by section 21(a) of the Electricity Industry Act 2000 (Vic) is a jurisdictional scheme.
On 19 July 2024, the AER has determined that the electricity distribution licence fee scheme satisfies the criteria for jurisdictional schemes. This means that from 1 July 2025, licence fees payable by Victorian DNSPs under section 21(a) of the Electricity Industry Act 2000 (Vic) will be recovered through a jurisdictional scheme adjustment as part of annual pricing approvals.