The Australian Energy Regulator (AER) is responsible for regulating the revenues of transmission network service providers (TNSPs) in accordance with the National Electricity Rules (NER). Under clause 6A.10.1 of the NER, TNSPs are required to submit to the AER a proposed pricing methodology relating to prescribed transmission services which are subject to a transmission determination. The AER is required to assess whether the proposed pricing methodology is consistent with the pricing principles contained in the NER and the AER's Pricing Methodology Guidelines (guidelines).
Clause 6A.25.1(c) of the NER requires the AER to develop and publish the guidelines by 31 October 2007. In April 2007, the AER released an issues paper outlining its obligations under the NER and canvassing issues relevant to the development of the guidelines. The AER received six submissions on its issues paper.
In May 2007 the AER engaged Network Advisory Services (NAS) to advise it on the development of the guidelines. After consideration of submissions on the issues paper and advice from NAS, the AER has developed proposed (draft) guidelines and an explanatory statement. Copies of the proposed guidelines, the explanatory statement and the NAS report are attached. Copies can also be obtained from the AER's website.
Interested parties are invited to make written submissions to the AER on the proposed guidelines by close of business Wednesday 5 September 2007. Submissions can be emailed to the AER at AERinquiry [dot] PMG
aer [dot] gov [dot] au (AERinquiry[dot]PMG[at]aer[dot]gov[dot]au) or sent to:
Mr Mike Buckley
General Manager
Network Regulation North Branch
Australian Energy Regulator
GPO Box 3131
Canberra ACT 2601