Notice of AER proposed determination on pricing of ActewAGL’s dual function assets
The AER will undertake the next distribution determination for ActewAGL for the regulatory control period commencing 1 July 2014 to 30 June 2019. In anticipation of its distribution determination, the AER is required to prepare and publish a framework and approach paper by 30 November 2012. The AER is also required to include in its framework and approach paper its determination on whether standard control services provided by dual function assets owned, controlled or operated by a distribution network service provider (DNSP) will be priced under transmission or distribution pricing rules.
Dual function assets are transmission style, high voltage capacity, lines and supporting assets. A formal definition of dual function assets is provided by the Glossary of the National Electricity Rules (NER). When owned or operated by a distribution network service provider (DNSP), such transmission style assets may be priced according to either distribution pricing rules (chapter 6 of the NER) or transmission pricing rules (chapter 6A).
ActewAGL has indicated to the AER that it owns dual function assets. Therefore, the AER must make a determination on the application of either chapter 6 or 6A of the NER to these assets.
The preliminary framework and approach paper for ActewAGL (the preliminary paper), released by the AER in June 2012, did not include information on the value of ActewAGL’s dual function assets. At time of finalising the preliminary paper the AER had not received such information from ActewAGL. Therefore, the preliminary paper (p. 84) included an undertaking by the AER to publish any such information and seek submissions prior to releasing its final framework and approach paper. Information provided to the AER by ActewAGL on its dual function assets is now provided – see related documents.
On the basis of information provided by ActewAGL, the AER proposes to include in its final framework and approach its determination that chapter 6A of the NER, transmission pricing, will apply to ActewAGL’s dual function assets.
Invitation for submissions
Stakeholders are invited to provide submissions to the AER in response to ActewAGL’s dual function asset information and the AER’s proposed determination. Please provide submissions to the AER by COB Friday 21 September 2012. Submissions may be emailed to: NSWACTelectricity
aer [dot] gov [dot] au (NSWACTelectricity[at]aer[dot]gov[dot]au)
The AER prefers that all submissions be sent in an electronic format in Microsoft Word or other text readable document form and publicly available, to facilitate an informed, transparent and robust consultation process. Accordingly, submissions will be treated as public documents and posted on the AER's website, except and unless prior arrangements are made with the AER to treat the submission, or portions of it, as confidential. Parties wishing to submit confidential information are requested to:
- clearly identify the information that is the subject of the confidentiality claim; and
- provide a non-confidential version of the submission