Rule Change: Completed

Overview

The Commission gave notice on 30 November 2006 under sections 102 and 103 of the NEL of the making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006 and the corresponding final Rule determination. The Rule determination affirms the Commissions draft Rule determination with some minor modifications and enhancements.
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<p>
The Commission gave notice on 30 November 2006 under sections 102 and 103 of the NEL of the making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006 and the corresponding final Rule determination. The Rule determination affirms the Commissions draft Rule determination with some minor modifications and enhancements.</p>
<h2>
Background</h2>
<p>
On 12 October 2005, the MCE proposed a Rule change to reform the Rules regarding the regulatory test for new transmission investment. The regulatory test is used to evaluate proposed regulated transmission investment against all other reasonable network and non-network alternatives.</p>
<p>
Under section 94 of the National Electricity Law (NEL) the Commission decided to commence initial consultation on this Rule change proposal by publishing a notice under section 95 of the NEL.</p>
<p>
Submissions on the initial consultation were due by 24 February 2006.</p>
<p>
Submissions raised a number of complex issues for the Commission to consider in the preparation of the draft Rule determination. Therefore, the Commission determined it was in the public interest to extend the time period for the publication of the draft Rule determination to 17 August 2006.</p>
<p>
On 10 August 2006, the Commission published a notice under section 107 of the NEL, extending the time period for the making of the draft Rule determination for this Rule proposal to 21 September 2006.</p>
<p>
On 21 September 2006, the Commission gave notice under section 99 of the NEL of the making of the draft Rule determination for this proposal. The draft Rule determination fundamentally accepts the MCE proposal subject to some enhancements and modifications including:</p>
<ul>
<li>
Clarification of the objectives for the Regulatory Test; and</li>
<li>
Improving the assessment of alternative options under the Test.</li>
</ul>
<p>
The Commission gave notice on 30 November 2006 under sections 102 and 103 of the NEL of the making of the National Electricity Amendment (Reform of the Regulatory Test Principles) Rule 2006 and the corresponding final Rule determination. The Rule determination affirms the Commissions draft Rule determination with some minor modifications and enhancements.</p>
<p>
The Rule commenced operation on 30 November 2006.</p>
<p>
The reasons for the Commission&rsquo;s decision are contained in the draft Rule determination. Submissions closed on 3 November 2006 and no requests for a pre-determination hearing were received in writing by the due date of 28 September 2006.</p>

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