Rule Changes: Open

Participant derogation - ACT DNSP Revenue Smoothing

Reference:
ERC0216
Stage:
Publication of Draft Determination
Proponents:
ActewAGL
Project Leader:
Sherine Al Shallah
Date initiated:
17-Nov-2016
Overview

On 26 April 2017 the AEMC published a draft rule determination in response to a rule change request for a participant derogation from ActewAGL. The rule change request seeks to minimise price volatility for ActewAGL customers that may occur as a result of the outcome of the judicial review proceedings in relation to ActewAGL’s 2014-19 distribution determinations.

 

On 26 April 2017 the AEMC published a draft rule determination in response to a rule change request for a participant derogation from ActewAGL. The rule change request seeks to minimise price volatility for ActewAGL customers that may occur as a result of the outcome of the judicial review proceedings in relation to ActewAGL’s 2014-19 distribution determinations.

While the draft rule is a more preferable rule, it incorporates elements proposed by ActewAGL.

The draft rule provides a process that allows for any increased or decreased revenue as a result of the outcome of the judicial review proceedings to be recovered over the current regulatory control period (2014-19)and the subsequent regulatory control period (starting 1 July 2019). The process provides a mechanism that:

  • minimises price volatility for consumers that may occur as a result of the outcome of the judicial review proceedings
  • allows the proponents to recover the revenue that they are entitled to for the current regulatory control period.

Stakeholders are invited to make submissions in response to the draft rule and draft rule determination by Tuesday 20 June 2017.

Background

The AEMC undertook consultation on the rule change request on 17 November 2016, and submissions to the consultation closed on 15 December 2016.

On 9 February 2017 the Commission extended the period of time to make a draft determination on the rule change request to 27 April 2017, under section 107 of the National Electricity Law. The Commission considered the extension to be necessary, in order to provide additional consultation with the proponents and relevant stakeholders on the complex implementation issues related to the participant derogation. 

The AEMC has also published a draft rule determination in response to a similar rule change request (ERC0210) submitted by Ausgrid, Endeavour Energy and Essential Energy (NSW DNSPs).  NSW DNSPs’ request has sought to address a similar issue that may affect its customers in the Australian Capital Territory. 

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