Transmission Pricing

Transmission Pricing

As a Transmission Network Service Provider (TNSP) in South Australia, ElectraNet operates within the highly-regulated National Electricity Market (NEM) environment under the National Electricity Law (NEL) in line with the National Electricity Rules (NER), with revenues administered by the Australian Energy Regulator (AER).

In line with the NER, ElectraNet provides the following three categories of transmission services:

• Prescribed Transmission Services

• Negotiated Transmission Services

• Non-Regulated (Contestable) Transmission Services

ElectraNet’s allocates costs between these categories, in line with the NER and the AER’s Cost Allocation Guidelines for TNSPs. ElectraNet’s Cost Allocation Methodology was approved by the AER on 1 September 2008.

ElectraNet determines prescribed transmission service prices to recover the costs of providing prescribed (regulated) transmission services in South Australia in accordance with its approved Pricing Methodology. As the coordinating network service provider for the South Australian region ElectraNet also recovers revenue on behalf of the owners of the Murraylink interconnector,

While prescribed transmission service prices to network customers are subject to significant volatility from year to year due to settlements residue related receipts and other issues, we are required to adjust for these factors in subsequent years to eliminate over or under recoveries.

The Transmission Service Price Schedule for prescribed transmission services is determined to apply from 1 July 2012 to 30 June 2013 and is required to be published by 15 May each year.

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