The AER creates, administers and maintains the STPIS in accordance with the requirements of the National Electricity Rules (Electricity Rules). The purpose of the STPIS is to provide incentives to TNSPs to improve or maintain a high level of service for the benefit of participants in the National Electricity Market (NEM) and end users of electricity.
The AER has published its final decision on the new transmission service target performance incentive scheme (STPIS) (STPIS version 5). The AER's final decision is to amend the scheme to ensure it continues to provide value for money by introducing financial incentives for forced outage service component sub parameters, making the market impact component symmetrical by providing a reward/penalty of ±1 per cent of maximum allowed revenue and for the network capability component, pro rating the annual financial incentive payments to the annual average cost of the approved projects and strengthening the ex-post assessment of projects. In making these changes, the AER has considered the extensive feedback received from stakeholder consultation.
This concludes the AER's STPIS version 5 review. This STPIS review and the publication of the final decision has been conducted in accordance with clause 6A.7.4 of the Electricity Rules.