The Australian Energy Regulator today made its final decision on pricing methodology guidelines which will be used by electricity transmission businesses to assist in the development of pricing methodologies.
"The requirement for transmission network businesses to develop and publish pricing methodologies is a new requirement under the National Electricity Rules and it is intended that the AER's guidelines will assist transmission businesses fulfil this requirement," AER Chairman, Mr Steve Edwell, said.
"The assessment and approval of pricing methodologies is an important new role for the AER," he said.
The guidelines relate to:
- the information requirements of a transmission pricing methodology
- the locational component of transmission charges
- the non-locational component of transmission charges
- the allocation of assets necessary to derive prices, and
- confidentiality provisions
In making its final decision the AER has taken into account submissions from interested parties. A copy of the final decision will be available from the AER's website.
Background
The National Electricity Rules require the AER to develop pricing methodology guidelines. The guidelines will assist transmission network businesses in the development of pricing methodologies which will be assessed by the AER. The guidelines are part of a suite of transmission guidelines developed by the AER.