On 24 June 2024, Jemena Electricity Networks asked the AER to determine the requirement that electricity Distribution Network Service Providers (DNSPs) pay a licence fee to the Essential Services Commission be considered a jurisdictional scheme.
The request was made on behalf of, and co-signed by, all Victorian electricity DNSPs.
The AER must assess all requests for jurisdictional schemes under the NER. Following review of the request, 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 will be recovered through a jurisdictional scheme adjustment as part of annual pricing approvals.
Background
A 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 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.