On 13 March 2025, SA Power Networks lodged an application for the AER to determine if the Small Compensation Claims Scheme (the scheme) established by the National Energy Retail Law (South Australia) Act 2011 is a jurisdictional scheme.
The scheme imposes obligations on SA Power Networks which include to pay compensation to small customers who make claims for property damage caused by claimable incidents.
The AER must assess all requests to determine if a scheme is a jurisdictional scheme under the National Electricity Rules (NER). Where a scheme meets the NER’s eligibility criteria at clause 6.18.7A(x), the AER must decide that the scheme is a jurisdictional scheme. These criteria include matters such as whether the scheme requires a distribution business to pay a person, the payments are not a fine or penalty, and the distribution business cannot recover these payments from any person. The AER must publish a determination assessing if the scheme is a jurisdictional scheme within 20 business days of receiving the request.
As the AER is satisfied the scheme meets the eligibility criteria, it has decided the scheme is a jurisdictional scheme.
The establishment of a jurisdictional scheme makes recovery of costs more administratively efficient for Distribution Network Service Providers, allowing costs to be recovered through the AER’s annual pricing review assessments.