Under clause 6.12.1(16A) of the transitional chapter 6 rules, the AER must decide which if any, components of direct control services are negotiable components. Under clause 6.12.1(16A) of the transitional chapter 6 rules, the AER draft distribution determinations must set out the Negotiable Component Criteria (NCC) for any negotiable components of direct control services for each DNSP.

The NCC set out the criteria that are to be applied by each DNSP in negotiating the terms and conditions of access and any access charges for negotiable components of direct control services. The NCC will also be used by the AER in resolving any access dispute between a DNSP and a person wishing to be provided with a negotiable component of direct control services.

The NCC determined by the AER must give effect to, and be consistent with, the negotiable components principles set out in clause 6.7A1 of the transitional chapter 6 rules.

Clause 6.7 of the transitional chapter 6 rules, which deals with negotiated distribution services, only applies to AusGrid (EnergyAustralia) and Endevour Energy (Integral Energy). Under the chapter 6 transitional rules, a service provided by a DNSP by means of, or in connection with, the DNSPs transmission support network and which would otherwise be classified as a negotiated distribution service is referred to as an “DNSP negotiated distribution service”.

Under clause 6.12.1(16) of the transitional chapter 6 rules, the AER draft distribution determination must set out the Negotiated Distribution Service Criteria (NDSC) for the DNSPs negotiated distribution services. The NDSC set out the criteria that are to be applied by a DNSP in negotiating terms and conditions of access and any access charges for negotiated distribution services. The NDSC will also be used by the AER in resolving any dispute between a DNSP and a person wishing to be provided with a negotiated distribution service.

At the time of publication of the proposed Negotiable Component Criteria (NCC) and Negotiated Distribution Service Criteria (NDSC), the AER was only aware of AusGrid (EnergyAustralia's) submission concerning negotiable components of direct control services. Subsequently the AER identified that Endevour Energy (Integral Energy) made submissions in relation to negotiable components of direct control services. Endeavour Energy (Integral Energy’s) negotiable component submissions are contained in Appendix H of its regulatory proposal.

The NDSC determined by the AER must give effect to, and be consistent with, the negotiated distribution service principles set out in clause 6.7.1 the transitional chapter 6 rules.

The AER held a NSW public forum for interested parties on the revenue proposal submitted by TransGrid and the regulatory proposals submitted by AusGrid (EnergyAustralia), Endeavour Energy (Integral Energy) and Essential Energy (Country Energy). The public forum gave businesses an opportunity to explain their proposals and interested parties were able to ask questions.