On 21 December 2005 the AER released a position paper on pass-throughs and revenue cap re-openers in order to clarify its position for the Powerlink review process. That paper considered approaches available to the AER to vary a transmission network service provider’s (TNSP’s) revenue cap allowance within a regulatory period in response to exogenous events. In the position paper, the AER indicates a preference for replacing the revenue cap re-opener provisions specified in the Statement of Regulatory Principles with pass-through arrangements.
The Australian Energy Market Commission (AEMC) has now released its Draft National Electricity Amendment Rule in which the AEMC proposes to adopt substantially the same pass-through categories as set out in the AER discussion paper.
Therefore, the AER proposes to suspend its consideration of this matter, subject to any variation in the Final Amendment Rule.