The AER released a draft decision on Ausgrid (EnergyAustralia) distribution determination.  The draft decision establishes the basis for determining NSW distribution network charges in the 2009-2014 regulatory control period.

In its draft decision the AER attached the incorrect version of EnergyAustralia's approved pricing methodology, subsequently resubmitted by EnergyAustralia as part of its revised regulatory proposal.

On the 6 March 2009 the AER released its supplementary draft decision in relation to alternative control (public lighting) services provided by Essential Energy (Country Energy), Ausgrid (EnergyAustralia), and Endevour Energy (Integral Energy).

The AER will make its final decision on NSW public lighting services as part of its final determination for the NSW distribution businesses in late April 2009.

As part of the draft decision, the AER proposed to replace the demand management innovation allowance which was published on 29 February 2008 (the original DMIA) with a replacement scheme (the replacement DMIA). Clause 6.6.3(c) of the transitional chapter 6 rules provides that the AER may amend or replace any demand management incentive scheme, with the agreement of each affected distribution network service provider.

Accordingly, the AER proposes to replace the original DMIA with the replacement DMIA, subject to the agreement of Essential Energy (Country Energy), AusGrid (EnergyAustralia) and Endevour Energy (Integral Energy).

On the 8 December 2008 the AER held pre-determination conferences for its draft decisions for Essential Energy (Country Energy) and 9 December 2008 for Ausgrid (EnergyAustralia) and Endeavour Energy (Integral Energy).

The purpose of the pre-determination conference was for the AER to explain the draft decisions and to receive oral submissions from interested parties.

Interested parties were invited to comment on the AER’s draft decisions and/or ask questions at the pre-determination conference.