On 13 March 2025 SA Power Networks (SAPN) made an application to the AER requesting it determine the Small Compensation Claims Scheme is a jurisdictional scheme.
The scheme imposes obligations on SAPN to pay compensation to residential and small business customers who make claims for property damage caused by failures in electricity infrastructure. In particular, where the failures cause a change in the voltage of electricity supplied to a small customer’s premise outside the standard voltage range. The scheme came into effect in South Australia on 13 March 2025 and is established by the National Energy Retail Law (South Australia) Act 2011.
We sought stakeholder input and received one submission which can be found here.
We assessed the Small Compensation Claim Scheme against the jurisdictional scheme eligibility criteria and are satisfied that it meets these criteria. We have therefore determined the Small Compensation Claim Scheme is a jurisdictional scheme.
Background
On receiving an application, under clause 6.18.7A(l) of the National Electricity Rules (NER), the AER must determine whether a scheme is a jurisdictional scheme and publish its decision within 20 business days.
To do this we must consider whether the scheme meets the jurisdictional scheme eligibility criteria as set out in clause 6.18.7A(x) of the NER.
These criteria include matters such as whether the scheme requires a distribution business to pay a person, that the payments are not a fine or penalty, and the distribution business cannot recover these payments from any person.
If we determine a scheme is a jurisdictional scheme, then each year a distribution network must include the scheme costs to be passed on to customers in its annual pricing proposal, including any under or over recoveries from previous years.