The AER released a formal decision on CitiPower’s capital contribution charge policy for recovering future upstream network augmentation costs. The formal decision is available below. This decision follows a draft decision on “CitiPower's capital contribution charge for marginal cost of network reinforcement” published by the Essential Services Commission of Victoria (ESCV) in December 2008.
The AER concluded that CitiPower’s current charge rates for recovering future upstream network augmentation costs do not comply with Electricity Industry Guideline No.14 of the ESCV because these rates do not take appropriate account of the timing of future augmentations. However, further consultation on the charging rates proposed by the AER is desirable as it did not receive sufficient information through the initial consultation process to form a final view on this matter.
Invitation for submissions
Interested parties are invited to make written submissions on the charging rates proposed by the AER, as fair and reasonable, for CitiPower to recover future upstream network augmentation cost due to additional demand of new customers to the AER by close of business Friday, 14 August 2009.
Submissions may be sent electronically to aerinquiry
aer [dot] gov [dot] au (aerinquiry[at]aer[dot]gov[dot]au).
Alternatively, submissions may be sent to:
Mr Chris PattasGeneral Manager
Network Regulation South Branch
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3000
The AER prefers that all written 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 asked to provide both confidential and non-confidential versions of their submission. All non-confidential submissions will be placed on the AER’s website.
The AER may, but need not, consider a submission it receives after the consultation period has ended.