A distribution network service provider (DNSP) may request the AER to determine whether a scheme is a jurisdictional scheme. Approval of a scheme as a jurisdictional scheme allows a DNSP to adjust prices through its annual pricing proposal to account for any under or over recovery in payment amounts associated with the scheme. This removes the need for the actual payment amounts to be considered under the distribution determination process and also removes the need for adjustments for any under or over recovery to be considered under the cost pass through process.
To make this request, the DNSP must submit to us a statement that includes an explanation of how the relevant scheme meets the jurisdictional scheme eligibility criteria. We must publish this statement and make a determination on whether a scheme is a jurisdictional scheme.
On 23 March 2016 we received a request from Energex to determine that a Queensland Government levy to fund a proportion of the Queensland Government's obligation for the Australian Energy Market Commission (AEMC) is a jurisdictional scheme. On 22 April 2016 we approved Energex's jurisdictional scheme request.