Framework and approach for Aurora Energy's forthcoming regulatory control period commencing 1 July 2012
On 1 January 2008, the Australian Energy Regulator (AER) became the national economic 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).
Aurora Energy Pty Ltd (Aurora) is the sole electricity distribution network service provider in Tasmania. The Office of the Tasmanian Economic Regulator (OTTER) is currently responsible for the economic regulation of Aurora. OTTER previously determined the maximum revenue that Aurora can charge for its services in the 2007-12 regulatory control period.
Responsibility for the Economic regulation of Aurora will transfer to the AER on or before the commencement of the forthcoming regulatory control period, starting 1 July 2012. The AER will undertake the next determination of Aurora's maximum revenue allowance for this regulatory control period.
Preliminary positions paper and proposed demand management incentive scheme
The release of the preliminary position paper commences the first stage of the determination process. The purpose of the preliminary positions paper is to consult on the matters that the AER must set out in its Framework and Approach paper for the forthcoming determination. The paper contains preliminary positions on the classification of services that the AER will regulate and the application of the AER's guidelines and incentive schemes to Aurora. The paper also includes a preliminary position on the control mechanisms to apply to Aurora.
The AER is now seeking submissions on:
- the appropriate classification of distribution services provided by Aurora
- the control mechanisms to be applied to those services
- the application, to Aurora, of the service target performance incentive scheme, demand management incentive scheme and efficiency benefit sharing scheme .
The AER has also released a proposed demand management incentive scheme to apply to Aurora in the forthcoming regulatory control period. Consultation on the proposed demand management incentive scheme will be conducted concurrently with consultation on the preliminary positions paper.
These documents have been published on the AER's website.
The AER welcomes submissions on these papers from interested parties by COB Monday 9 August 2010.
Issues raised in submissions will be taken into account in developing the AER's framework and approach paper for Aurora and the AER's potential demand management incentive scheme for Aurora. The framework and approach paper must be published by 30 November 2010 and the demand management incentive scheme must be published by 15 October 2010.
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 PattasGeneral Manager
Network Regulation South
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3000
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.