The Australian Energy Regulator (AER) has today submitted two Rule change requests to the AEMC which seek to change the basis on which revenues are set for companies that own and operate the electricity and natural gas networks in the eastern states of Australia (and Western Australia, for gas networks).
It is nearly five years since the introduction of Rules under which the AER sets revenues for regulated transmission and distribution network companies. The AER has proposed changes to the Rules that it believes will lead to more efficient outcomes for customers.
The AER's Rule change requests are:
- Economic regulation of transmission and distribution network service providers - AER's Proposed Changes to Chapters 6 and 6A of the National Electricity Rules; and
- Price and revenue regulation of gas distribution and transmission services - AER's Proposed Changes to the rate of return provisions of the National Gas Rules.
The AER has advised that these requests are available from today on its website.
The AEMC has commenced consideration of the Rule change requests. It expects to make a decision whether to initiate a Rule change process in October 2011.
When the AEMC receives a Rule change request, it must consider whether the request meets certain preliminary criteria in accordance with the National Electricity Law or National Gas Law. Following this consideration if the AEMC decides to take action in respect of the request it will issue a notice which states that a Rule change process has been initiated, along with a call for submissions on the request.
For information on AEMC process contact: AEMC Director, Richard Khoe on (02) 8296 7800.
For information on the content of the rule change requests contact AER Director, Ross Mitchell on (02) 9230 9127.
Media: AEMC Communication Manager, Prudence Anderson 0404 821 935 or (02) 8296 7817.