The AER is consulting on an application by SA Power Networks (SAPN) to determine if 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 welcome stakeholder input. Submissions, including request for alternative ways to provide input, should be made to AERPricing
aer [dot] gov [dot] au (AERPricing[at]aer[dot]gov[dot]au) by 26 March 2025.
The AER will make its decision by 9 April 2025 as required under the timeframes specified in the National Electricity Rules (NER).
Background
On receiving an application, under clause 6.18.7A(l) of the 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.