The AER's Rule change proposal seeks to amend certain clauses in the National Electricity Rules relating to the weighted average cost of capital reviews to be concluded by the AER.

Background

On 14 April 2008, the Commission received a Rule change proposal from the AER.

The AER’s Rule change proposal sought to amend certain clauses in the National Electricity Rules relating to the weighted average cost of capital parameter reviews to be conducted by the AER.

On 15 May 2008, the Commission published a notice under section 95 of the NEL advising of its intention to commence the Rule change process and initial consultation on this Rule proposal.

The AEMC intended to expedite the making of the proposed Rule under section 96 on the grounds that the proposed Rule was non-controversial, subject to the receipt of written objections. The AEMC was of the view that the proposed Rule was unlikely to have a significant effect on the national electricity market as it sought to improve the clarity of the WACC parameter reviews.

Written objections in relation to expediting the proposal under section 96 closed on 29 May 2008. No written objections were received by this date. Submissions closed on 13 June 2008.

On 26 June 2008 the Commission gave notice under section 102 of the National Electricity Law (NEL) of its final Rule determination. The Commission also gave notice under section 103 of the NEL of the making of the National Electricity Amendment (WACC, technical drafting issues) Rule 2008 No. 5. This Rule commenced on 1 July 2008.

In making this final Rule determination the Commission adopted the intent of the Rule change requested by the Australian Energy Regulator (AER) with some modifications to improve clarity and regulatory certainty.