On 19 May 2015 the AER approved ElectraNet's proposal seeking early application of the network capability component of the service target performance incentive scheme (STPIS) in its current 2013-18 regulatory control period.
Under the National Electricity Rules, transmission network service providers (TNSPs) may apply for an early application of the network capability component of the STPIS. The network capability component incentivises TNSPs to identify and implement low cost solutions to network limitations.
The AER's final decision approves ElectraNet to commence application of the network capability component on 1 July 2015 and approves the six priority projects, with a total value of $10.05 million, proposed in ElectraNet's network capability incentive parameter action plan. Under the network capability component ElectraNet will receive an annual incentive allowance of 1.5 per cent of its annual MAR, subject to the completion of the approved priority projects. The approved projects have been developed by ElectraNet in consultation with AEMO, who considers that they will bring material benefits if implemented.