Rule Change: Completed

Overview

The Final Rule largely confirms the continued operation of current pricing methodologies while also providing scope for innovation into the future.
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<p>
The Final Rule largely confirms the continued operation of current pricing methodologies while also providing scope for innovation into the future.</p>
<p>
<strong>Background</strong></p>
<p>
The Commission published a Rule Proposal Report, accompanying Proposed Rule and a Section 95 notice on 24 August 2006. This commenced the first round consultation of the Rule making process for the proposed Rule. The Proposed Rule was named the National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006.</p>
<p>
Submissions in relation to this Rule Proposal were due by 25 September 2006.</p>
<p>
The Commission issued a draft Rule Determination and a Draft National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006 on and a section 99 notice on 19 October 2006.</p>
<p>
Submissions were due by 30 September 2006.</p>
<p>
The Commission issued on 21 December 2006 a notice under sections 102 and 103 of the National Electricity Law of the making of the National Electricity Amendment (Pricing of Prescribed Transmission Services) Rule 2006 No.22 and the corresponding final Rule Determination.</p>
<p>
The Final Rule largely confirms the continued operation of current pricing methodologies while also providing scope for innovation into the future. This has been achieved by recasting the regulatory framework incorporating codification in the Rules of the key design features of the regime including:</p>
<ul>
<li>
principles for prescribed transmission service pricing methodologies (arrangements for the pricing of negotiated services have been dealt with in the Draft Revenue Rule);</li>
<li>
the requirement for the Australian Energy Regulator (AER) to make guidelines in specific areas of pricing implementation and administration with a focus towards consistency across the NEM; and</li>
<li>
clear procedural requirements for the development, implementation and administration of pricing methodologies.</li>
</ul>
<p>
The Rule commences on 28 December 2006.</p>
<p>
This finalises the Rule making process for the Review of Transmission Revenue and Pricing.</p>

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Documentation