On 17 December 2012 SP AusNet submitted a rule change request to the Australian Energy Market Commission (AEMC) relating to how electricity distribution network businesses recover costs associated with network support service arrangements. SP AusNet sought to introduce a rule that would allow a specific pass through for network support service arrangements that defers the need for augmentation of:
- the distribution network; and
- transmission-distribution connection assets.
A specific network support pass through would give network businesses greater scope to pass the costs of network support services through to consumers.
Consultation paper
On 17 May 2013 we provided a submission in response to the AEMC’s rule change consultation paper. The submission supported minimising barriers to the use of network support, but suggested the consideration of mechanisms other than those outlined in the proposed rule change.
Draft rule determination
On 2 October 2013 we provided a submission in response to the AEMC’s draft decision on the SP AusNet rule change proposal to align the distribution provisions with the transmission provisions for the recovery of network support payments. The AER supported the approach, agreeing with the objective of minimising barriers to the use of network support to minimise inefficient network investment.
AER submission to AEMC on draft decision network support payments - 2 October 2013
More information
More information on AEMC's recovery of network support payments can be found on the AEMC website.