The Australian Energy Regulator today issued its second electricity regulatory report covering transmission network service providers in the National Electricity Market.
The report provides revenue, profit, expenditure and service standards information on each of the transmission businesses for the 2005/06 reporting year. The businesses covered are ElectraNet, EnergyAustralia, Murraylink, Powerlink, SP AusNet, Transend, TransGrid and VENCorp.
"The report aims to provide transparency about the financial and operational performance of the transmission businesses," AER Chairman, Mr Steve Edwell, said.
"It builds on work undertaken by the Australian Competition and Consumer Commission in two previous reports."
Mr Edwell said three main trends are now emerging:
"First, capital expenditure is relatively high. Total expenditure over the past four years is close to $2.4 billion, and was almost 10 per cent higher than forecast for 2005/06.
"Second, operating and maintenance expenditure stands at almost $1.4 billion over the past four years and is close to forecast levels for this period.
"Third, service standards are improving, with most transmission businesses outperforming against their historic levels. The businesses have been rewarded with service standards incentive payments totalling almost $5.4 million for the 2005 calendar year.
"Overall, these trends are encouraging. The AER's report suggests that the transmission businesses have responded appropriately to increases in summer peak demand. Further, solid investment and service standards results were achieved with relative stability in transmission charges."
In publishing the report, the AER took into account confidentiality considerations and comments from the transmission networks.
The full report will be available on the AER website.
Background
Electricity transmission is the high voltage wires network between towns, cities and states used to transport electricity from generators to distributors. Electricity distribution, by contrast, is typically lower voltage radial networks that transport electricity from the transmission take off points to end household and business users. In a few cases large businesses are directly connected to the transmission system (eg aluminium smelters).