The Australian Energy Regulator (AER) is responsible for approving the distribution tariffs and the pass through of transmission tariffs for the Victorian distribution businesses.
Changes to transmission tariffs are limited to a re-balancing constraint of CPI + Z + Y per cent. The Z factor is calculated as the average annual increase in transmission costs up to an 18 per cent cap; and the Y factor is equal to 2 per cent.
Under clause 3.4.7 of the Electricity Distribution Price Review 2006-10 - Final Decision Volume 2, the Regulator may adjust the re-balancing constraint that applies to transmission tariffs where it is satisfied that a distributor will not be able to recover its expected transmission related costs even if all existing transmission tariffs are increased by the existing transmission control.
The AER has received submissions from CitiPower, Jemena, Powercor and United Energy to vary the transmission control in order to pass through increases in transmission related costs.
Details of the submissions and the AER's consultation process are available on the AER's website.
Submissions
Interested parties are invited to comment on the on the proposal to adjust the control applying to transmission tariffs. Submissions need to be sent to the AER by Friday, 6 November 2009.
Submissions can be sent electronically to aerinquiry
aer [dot] gov [dot] au (aerinquiry[at]aer[dot]gov[dot]au).
Alternatively, submissions can be sent to:
Mr Chris PattasGeneral Manager
Network Regulation South
Australian Energy Regulator
CPO Box 520
Melbourne Vic 3001
To facilitate an informed, transparent and robust consultation process, the AER prefers that all submissions be in an electronic format and publicly available. 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.