The Australian Energy Regulator (AER) published a draft decision today on the early application of version 4 of the service target performance incentive scheme (STPIS) for transmission network service providers (TNSPs). The draft decision also sets out our preliminary position on the application of the STPIS to TransGrid and Transend during their transitional year.
The STPIS is a scheme established and amended by the AER which is designed to provide incentives for each TNSP to maintain or improve reliability of transmission network services at times most valued by customers and elements of the network most important to facilitating efficient wholesale electricity prices.
On 20 December 2012, the AER finalised its review of the STPIS by publishing version 4 of the scheme. We amended the scheme to focus more on lead indicators of reliability in the service component, changed the way performance against the market impact component is measured to improve consistency of performance and introduced a new network capability component (NCC) to incentivise TNSPs to identify and implement low cost solutions to network limitations.
On 29 May 2013, the AER received a formal application from ElectraNet seeking early application of the NCC of version 4 of the STPIS from 1 July 2014.
The AER invites interested parties to provide written submissions by close of business Wednesday 25 September 2013. Details on how to make a submission are on our early application of version 4 of the STPIS web page.