The AER seeks to provide performance incentives for transmission network service providers (TNSPs) to maintain and improve upon levels of service through greater efficiency in processes and service delivery.
Through the service standards guidelines and service standards measures outlined in individual TNSP's revenue cap decisions, TNSPs are encouraged to meet unique service performance targets. TNSPs are required to report this performance on an annual basis. This performance is then measured and the final result can lead to a financial reward or penalty which is then applied to the TNSP's annual revenue allowance.