Endeavour Energy’s cost allocation methodology (CAM) governs the manner in which Endeavour Energy 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-subsidization between distribution services and other services Endeavour Energy provides.
On 21 February 2018 Endeavour Energy submitted an amended CAM for approval. We assessed Endeavour Energy’s proposed CAM amendments against the requirements of the National Electricity Rules and the AER’s Cost Allocation Guideline. We approved Endeavour Energy’s CAM and the details of our assessment are set out in the AER decision paper.