On 1 January 2008, the Australian Energy Regulator (AER) 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).
CitiPower, Powercor, Jemena, SP AusNet and United Energy are the electricity distribution network service providers (DNSPs) in Victoria. These DNSPs are currently regulated by the Essential Services Commission of Victoria (ESCV).
The AER will assume responsibility for the economic regulation of the Victorian DNSPs on 1 January 2009.
The next distribution determination for the Victorian DNSPs’ prices will be undertaken by the AER. This determination will commence on 1 January 2011. 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 and will commence on 1 January 2009.
Framework and approach paper
The first stage of the distribution determination process commenced today, with the release of a position paper on the framework and approach for the Victorian DNSPs for the 2011-15 distribution determination. The AER is now seeking submissions on:
- the appropriate classification of distribution services provided by CitiPower, Powercor, Jemena, SP AusNet and United Energy
- the control mechanisms to be applied to those services
- the application to CitiPower, Powercor, Jemena, SP AusNet and United Energy of a service target performance incentive scheme, an efficiency benefit sharing scheme, and a demand management incentive scheme.
Issues regarding the AER’s preliminary positions can be addressed in written submissions to the AER by Friday 6 March 2009.
Issues raised in submissions will be taken into account in developing the AER’s framework and approach paper for the Victorian DNSPs, which must be published by 30 May 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 Pattas
General Manager
Network Regulation South
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3001
The AER prefers that all submissions be publicly available to facilitate an informed and transparent consultative process. Submissions will be treated as public documents unless otherwise requested. Parties wishing to submit confidential information are requested to provide a non-confidential version of the submission in a form suitable for publication.
All non-confidential submissions will be placed on the AER’s website.
Enquiries about the position paper, or about lodging submissions, should be directed to the Network Regulation South branch.
If sufficient interest is generated, the AER will hold a stakeholder forum in Melbourne in mid February 2009 to discuss the AER’s preliminary positions and stakeholders views on these matters.