The Australian Energy Regulator (AER) released, on 28 June 2010, a consultation paper seeking stakeholders’ comments on CitiPower’s and Powercor’s proposed security fee schemes.
Under Electricity Industry Guideline No. 14 – Provision of Services by Electricity Distributors, a distribution network service provider (DNSP) may require a security deposit (security fee) when connecting high risk customers to insure against potential asset stranding, which will then be eventually funded by all other customers of the DNSP. The consultation paper summarises CitiPower’s and Powercor’s proposed security fee schemes and seeks stakeholder comments on whether, the interest rate paid to new connecting customers on any security fee refunded is appropriate. The consultation paper also seeks comments on the fairness and reasonableness of the proposed security fee schemes, which will inform the AER should a dispute be submitted to AER.
The AER welcomes submissions to this consultation paper which are due by 26 July 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 3001
The consultation paper on CitiPower’s and Powercor’s proposed security fee schemes is available on the AER's website.