The AEMC has made a final rule determination that amends the timing of the application of the Australian Energy Regulator’s revised Rate of Return Guidelines to TasNetworks’ distribution business.
The final rule will result in the current, rather than the revised, Rate of Return Guidelines applying to TasNetworks’ revenue proposals in its regulatory control period starting 1 July 2019 for both its transmission and distribution businesses.
TasNetworks’ rule change request identified that under arrangements put in place last year, the revised Rate of Return Guidelines would have applied to TasNetworks’ distribution business and the current Rate of Return Guidelines to its transmission business in the aligned regulatory control period.
By basing its revenue proposals on one rather than two Rate of Return Guidelines, the final rule will reduce costs and uncertainty for TasNetworks in preparing and making its proposals. This change may also make it easier and provide a more streamlined assessment process for stakeholders and the Australian Energy Regulator. TasNetworks is the only network business affected by this inconsistency. The final rule will not alter any arrangements for other network service providers.
The final rule is substantially the same as the proposed rule except for some minor drafting amendments.
Media: Prudence Anderson, Communications Director, 0404 821 935 or DL (02) 8296 7817.