SA Power Network’s (SAPN) cost allocation method (CAM) governs the manner in which SAPN is allowed to allocate costs to the distribution services it provides. Allocation of costs between services is required to accurately represent the costs incurred in providing those services. This prevents cross-subsidisation between distribution services and other services SAPN provides.
On 20 December 2017 SAPN submitted an amended CAM for approval. We assessed SAPN’s proposed CAM amendments against the requirements of the National Electricity Rules and the AER’s Cost Allocation Guideline. We approved SAPN’s CAM and the details of our assessment are set out in the AER decision paper.