The AER has amended its pricing methodology guidelines, in response to a rule change introducing inter-regional transmission charging arrangements. The amendments follow on from an issues paper the AER published in April 2014.
In accordance with the National Electricity Rules (the NER), transmission network service providers are required to submit to the AER a proposed pricing methodology relating to prescribed transmission services which are subject to a transmission determination. The AER is required to assess whether the proposed pricing methodology is consistent with the pricing principles for prescribed transmission services outlined in rule 6A.23 of the NER and the AER’s pricing methodology guidelines.
The AER initially published its pricing methodology guidelines in 2007. However, in anticipation for the introduction of inter-regional transmission charging arrangements from 1 July 2015, the AER was required to amend them this year. The only amendments that have been made relate to inter-regional transmission charging arrangements.