The National Electricity Rules (NER) require the AER to prepare a statement on control mechanisms for alternative control services to apply in the ACT and NSW 2009 distribution determinations before 1 March 2008. The AER has published this statement. For completeness, the AER has also prepared a guideline on the control mechanisms for direct control services for the ACT and NSW 2009 distribution determinations.
The NER states that the AER must also develop and publish a demand management incentive scheme, an efficiency benefit sharing scheme and a service target performance incentive scheme by 1 March 2008, if it decides that these schemes will apply to the 2009 ACT and NSW distribution determinations. The AER has determined to apply a demand management incentive scheme and an efficiency benefit sharing scheme, but will not apply a service target performance incentive scheme to the 2009 ACT and NSW determinations. The AER’s decision documents and relevant guidelines and schemes are available on the AER’s website.
In its December 2007 preliminary positions paper (also available on the AER’s website) the AER canvassed the possibility of publishing a guideline on the AER’s approach to determining materiality in the context of possible pass through events. This matter is still under consideration.