On 1 January 2008, the Australian Energy Regulator (AER) became the national regulator of monopoly electricity distribution services in the National Electricity Market (NEM). The AER's functions and powers are set out in the National Electricity Law (NEL) and the National Electricity Rules (NER).
ETSA Utilities, the distribution network service provider for South Australia, is currently regulated by the Essential Services Commission of South Australia (ESCOSA), in accordance with the Electricity Distribution Price Determination for the regulatory control period 1 July 2005 to 30 June 2010.
The AER will assume responsibility for the economic regulation of ETSA Utilities on 1 July 2010, with the commencement of its first distribution determination for that business. However, the process that the AER must follow in making that distribution determination will take place over the final two years of the current regulatory period, commencing on 30 June 2008. The purpose of this notice is to inform the market of the timing of various components of that process.
Framework and approach paper
The first stage of the distribution determination process commenced today, with the release of a position paper on the framework and approach for ETSA Utilities' 2010-15 distribution determination, seeking submissions on:
- the appropriate classification of distribution services provided by ETSA Utilities
- the control mechanisms to be applied to those services
- the application to ETSA Utilities of a service target performance incentive scheme, an efficiency benefit sharing scheme, and a demand management incentive scheme.
Issues regarding the AER's preliminary positions can be addressed in written submissions to the AER by Monday 11 August 2008.
Submissions can be sent electronically to: AERerinquiry
aer [dot] gov [dot] au (AERerinquiry[at]aer[dot]gov[dot]au)
Alternatively, submissions can be sent to:
Mr Chris Pattas
General Manager
Network Regulation South
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3000
The AER prefers that all submissions be publicly available to facilitate an informed and transparent consultative process. Submissions will be treated as public documents unless otherwise requested. Parties wishing to submit confidential information are requested to provide a non-confidential version of the submission in a form suitable for publication.
All non-confidential submissions will be placed on the AER's website.
Enquiries about the position paper, or about lodging submissions should be directed to the Network Regulation South branch.
If sufficient interest is generated, the AER will consider holding a public forum in Adelaide in September to explore issues raised by stakeholders in their written submissions. Issues raised in submissions will be taken into account in developing the AER's framework and approach paper for ETSA Utilities, which must be published by 30 November 2008.