The Australian Energy Regulator (AER) is responsible for regulating the revenues of Transmission Network Service Providers (TNSPs) in accordance with the National Electricity Rules (NER).
In accordance with clause 6A.10.1 of the NER, TNSPs are required to submit to the AER a proposed pricing methodology relating to prescribed transmission services which are subject to a transmission determination. The AER is required to assess whether the proposed pricing methodology is consistent with the pricing principles contained in the NER and the AER's Pricing Methodology Guidelines.
Clause 6A.25.1(c) of the NER requires the AER to publish Pricing Methodology Guidelines by 31 October 2007. The AER will consult with interested parties throughout the development of the Guidelines. The AER has developed an Issues Paper outlining its obligations under the NER and canvassing issues relevant to the development of the Guidelines. Submissions from interested parties are sought by 16 May 2007.
After consideration of submissions, the AER will develop and publish its proposed Pricing Methodology Guidelines and request submissions on that document prior to publishing its final Pricing Methodology Guidelines.
A copy of the Pricing Methodology Guidelines Issues Paper is attached. A copy of the paper can also be obtained from the AER's website.