The cost allocation method (CAM) governs the manner in which AusNet Services (distribution) 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 regulated distribution services and other services that AusNet provides.
On 13 September 2018 AusNet Services applied to amend its CAM mainly to reflect its new corporate structure which addresses its ring fencing obligations. We assessed AusNet’s proposed CAM amendments against the requirements of the National Electricity Rules and the AER’s Cost Allocation Guideline. We approved AusNet’s CAM and the details of our assessment are set out in the AER decision paper.