The AER is preparing to undertake distribution determinations for the Queensland electricity distribution network service providers (DNSPs), Energex and Ergon Energy. Both DNSPs must submit a regulatory proposal to the AER by 31 May 2009 and the AER must publish a distribution determination for both Energex and Ergon Energy by 30 April 2010. The National Electricity Rules (NER) require that the AER publish a framework and approach paper in anticipation of every distribution determination.
Clause 11.16.6 of the NER permitted Energex and Ergon Energy to submit proposals to the AER in relation to the classification of services and the control mechanisms to apply for the next regulatory control period by 31 March 2008. This transitional arrangement is unique to Energex and Ergon Energy.
On 31 March 2008, the AER received proposals from Energex and Ergon Energy (see attached) relating to the classification of services and control mechanisms to apply for the next regulatory control period (1 July 2010 to 30 June 2015). The AER must publish its framework and approach paper on these matters by 31 August 2008. The objective of the framework and approach paper is for the AER to set out its likely approach to these matters in its upcoming distribution determinations for Energex and Ergon Energy. It should be noted that the AER may change its decision on the classification of services between the framework and approach paper and its distribution determinations but that the decision on control mechanisms is binding for each distribution determination.
The AER has requested that Energex and Ergon Energy provide supplementary information mapping their existing service classifications and control mechanisms to their proposed classification of services and control mechanisms. On receipt of this information the AER will publish it on its website.
The DNSP's proposals and further information about the process the AER must follow in making the distribution determinations is available from the AER's website www.aer.gov.au.
Invitation for submissions
Interested parties are invited to make submissions on Energex and Ergon Energy's proposals. Submissions can be sent electronically to AERInquiry
aer [dot] gov [dot] au (AERInquiry[at]aer[dot]gov[dot]au), or alternatively mailed to:
Mr Mike Buckley
General Manager
Network Regulation North Branch
Australian Energy Regulator
GPO Box 3131
Canberra ACT 2601
The closing date for submissions is 28 April 2008.
The AER prefers that all submissions be in an electronic format 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.