The Australian Energy Regulator (AER) released, on 25 June 2010, the Guidance Paper: The AER’s conclusion on the benchmark upstream augmentation charge rates for CitiPower’s network.
It should be noted that this AER conclusion only relates to the interpretation and application of the Essential Services Commission of Victoria’s Electricity Industry Guideline No. 14 – Provision of Services by Electricity Distributors to CitiPower’s augmentation charges.
The AER’s findings are based on a consultation process on CitiPower’s approach of charging new customers the full marginal average unit cost for future augmentation of CitiPower’s shared network assets upstream of the customers’ connection points (commonly referred to as deep connection charge) as part of the overall project cost in calculating connection charges, regardless of whether such augmentation takes place immediately or some time in the future.
The guidance paper provides the AER’s conclusions on the fair and reasonable benchmark upstream augmentation charge rates for CitiPower’s network. The AER will use the findings of this paper to inform any future assessment of whether CitiPower’s connection charges under its distribution licence conditions are fair and reasonable and compliant with Guideline No. 14.
The "Guidance Paper” is available on the AER's website.
Inquiries
Inquires may be sent electronically to aerinquiry
aer [dot] gov [dot] au (aerinquiry[at]aer[dot]gov[dot]au).
Alternatively, inquires may be sent to:
Mr Chris PattasGeneral Manager
Network Regulation South Branch
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3000