On 25 February 2021, CitiPower, Powercor and United Energy Distribution requested the AER determine whether the Energy Safe Victoria (ESV) Levy Scheme is a jurisdictional scheme. The National Electricity Rules (NER) allows any person to request the AER to determine whether a scheme is a jurisdictional scheme. The AER has today published its determination of the scheme as a jurisdictional scheme.
The AER has determined that the scheme established by section 8 of the Electricity Safety Act 1998 (Vic) is a jurisdictional scheme pursuant to clause 6.18.7A of the NER. Under this scheme, known as the ESV Levy Scheme, Victorian electricity distribution network service providers (DNSPs) must make payments to ESV in respect of their reasonable costs and expenses, as determined by the Victorian Minister. The AER has determined that this scheme meets the jurisdictional scheme eligibility criteria set out in the NER.
This approval reduced the steps that all Victorian DNSPs need to undergo to recover the actual costs associated with the jurisdictional scheme obligations. The Victorian DNSPs previously included ESV Levy Scheme payments in their operating expenditure forecasts, including for the 2021-26 distribution determinations. The Victorian DNSPs will now recover the costs through the annual pricing review. As a result, the AER will exclude the ESV Levy costs from the operating expenditure forecasts and consequently from allowed revenues in the 2021-26 Victorian final distribution determinations.