The AER has published its final decision on a new electricity transmission service target performance incentive scheme (STPIS). The AER’s final decision is to amend the scheme to focus more on lead indicators of reliability, change the way performance against the market impact component is measured to improve consistency of performance and introduce a new network capability component to incentivise TNSPs to identify and implement low cost solutions to network limitations. The changes introduced in the new version 4 of the STPIS are based on the AER’s findings of its STPIS review, which included extensive stakeholder consultation.
The STPIS is a scheme established and amended by the AER which is designed to provide incentives for each TNSP to maintain or improve reliability of transmission network services at times most valued by customers and elements of the network most important to facilitating efficient wholesale electricity prices.
The STPIS review and the publication of the final decision has been conducted in accordance with clause 6A.7.4 of the Electricity Rules.