Rule Changes: Open

Application of rate of return guidelines to TasNetworks

Reference:
ERC0223
Stage:
Consultation on request for rule change (expedited)
Proponents:
TasNetworks
Project Leader:
Tom Redmond
Date initiated:
22-Aug-2017
Overview

On 9 June 2017, Tasmanian Networks Pty Ltd (TasNetworks) submitted a request to the Australian Energy Market Commission (AEMC) to make a rule change regarding the timing of the application of the Australian Energy Regulator’s Rate of Return Guidelines’ revision, scheduled to commence by 17 December 2018, to its distribution business.

On 9 June 2017, Tasmanian Networks Pty Ltd (TasNetworks) submitted a request to the Australian Energy Market Commission (AEMC) to make a rule change regarding the timing of the application of the Australian Energy Regulator’s Rate of Return Guidelines’ revision, scheduled to commence by 17 December 2018, to its distribution business.

Consultation

On 22 August 2017, the AEMC published a consultation paper. The AEMC invites any comments on the rule change request. Submissions to the consultation paper are due 19 September 2017.

The rule change process

TasNetworks proposed its rule change request be treated as non-controversial and to be expedited under section 96 of the National Electricity Law. The AEMC will assess this rule change request as non-controversial under an expedited rule making process subject to the receipt of any written objections from stakeholders by 5 September 2017.

Background

The rule change request relates to implementation of the Rate of Return Guidelines Review rule change which inserted rule 11.93.1 into the National Electricity Rules (NER).

TasNetworks has stated that without the proposed amendment, clause 11.93.1 of the NER will result in different Rate of Return Guidelines applying to its five year transmission and distribution regulatory control periods commencing 1 July 2019.

TasNetworks has stated that applying different Rate of Return Guidelines to each of its transmission and distribution determinations will cause inconvenience, timing issues and create further complications for its stakeholders.

TasNetworks’ proposed solution is to have the current 2013 Rate of Return Guidelines apply to its five year distribution determination for the regulatory control period commencing 1 July 2019.

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Documentation