The Australian Energy Regulator (AER) has released its final decision on CitiPower's and Powercor's proposed interest rate for refund of security deposits under their security fee schemes. The final decision paper follows an extensive consultation process including a draft decision released in December 2010.
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 existing customers and the distribution businesses against the potential cost of asset stranding.
The final decision and the papers which formed the AER’s consultation process on CitiPower's and Powercor's proposed security fee schemes are available on the AER's website.