The Australian Energy Regulator today commenced consultation on the first stage of its distribution determination process for ETSA Utilities for the 1 July 2010 to 30 June 2015 regulatory control period, with the release of a position paper on the framework and approach for that determination.
The AER has invited submissions from interested parties on:
- the appropriate classification of distribution services provided by ETSA Utilities
- the control mechanisms to be applied to those services, and
- the application to ETSA Utilities of the new service target performance incentive scheme and efficiency benefit sharing scheme.
At the same time, the AER has published a proposed demand management incentive scheme for ETSA Utilities, which will work with existing incentives in the economic regulatory framework to encourage and facilitate investigation of viable and efficient options for demand management. The AER's proposed application of that scheme to ETSA Utilities is also set out in the position paper.
The final framework and approach for the 2010-15 distribution determination, which will be published by 30 November 2008, will provide certainty to ETSA Utilities on key elements of its regulatory proposal to the AER, which must be submitted by 31 May 2009. The AER looks forward to active engagement with market participants and customers in the coming months.
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: 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
GPO Box 520
Melbourne VIC 3000
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.
Background
On 1 January 2008, the Australian Energy Regulator 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.