Today, the Australian Energy Regulator has written to the NSW and ACT network businesses setting out how it proposes to correct a small number of administrative errors in its 30 April determinations. This is to ensure that the associated legal documents accurately reflect its decisions.
These corrections do not change the decisions that are expected to lead to lower electricity bills for residential and business customers in NSW and ACT. These changes to the documents will take effect no earlier than 1 July 2015, when the regulatory period commences.
Last week, the AER wrote to the network businesses advising of its intention to revoke and substitute its determinations. The AER then consulted with the network businesses and sought further legal advice. As a result of this advice, the AER decided not to revoke the distribution determinations at this time, but will correct the errors as soon as practicable after 1 July 2015 or when any appeal in relation to the determination is resolved.
The AER is seeking to correct ‘material errors’ that had been identified since the determinations were released. This is a specific legal term which relates to a clerical mistake or an accidental slip or omission, a miscalculation or mis-description. This is to distinguish the errors from typos or grammatical mistakes.
These corrections will not impact on the AER’s final decisions on the revenues of ActewAGL, Endeavour Energy or Essential Energy. The AER expects there will be a minimal impact (a reduction of around $4.4m over four years or 0.06 percent) on Ausgrid’s total revenue.
AER Chair Paula Conboy said, “The AER’s final decisions will lower electricity network charges. This is expected to result in lower electricity bills for customers in the ACT and NSW. Correcting clerical errors will not change the savings that customers should expect as a result of our decisions”.
“Today’s decision will provide for regulatory certainty, address concerns raised by the network businesses and will not impact upon the timing of any appeal. The legislative framework has been designed to address circumstances where errors are found and it is not unusual or uncommon in a document of the size and complexity of the AER’s decisions,” Ms Conboy said.
The letters are available at the AER website at each of the network business determinations.