As part of its 2009 distribution determinations for the NSW electricity distribution network service providers (DNSP) the AER adopted IPART's D-factor scheme. The scheme allows the NSW DNSP's to recover costs and foregone revenues associated with demand management projects.
The AER has received and is currently reviewing D-factor submissions from Integral Energy and EnergyAustralia for 2009-10. Country Energy did not provide a D factor submission for 2009-10. The DNSP's submissions and independent review reports are available from the AER's website. The AER will make its D factor determination in March 2011.
The AER is responsible for approving the NSW DNSP's annual pricing proposals under clause 6.18 of the transitional chapter 6 rules. The D-factor is an input into the pricing proposals to be submitted by the NSW DNSP's to the AER by 1 May 2011. The AER must consider each businesses D-factor submission and make a determination on them prior to the pricing proposal being submitted.