Categories of Transmission Services
ElectraNet provides the following categories of transmission services in accordance with the National Electricity Rules:
- Prescribed transmission services – these services are subject to revenue regulation by the Australian Energy Regulator (AER) and are defined as shared transmission network services, connection services provided to distribution or other regulated networks, and grandfathered prescribed connection services provided to generators and high voltage customers
- Negotiated transmission services – these are connection services provided to a generator or transmission customer, or a group of generators or transmission customers, and shared transmission services provided to customers where the service exceeds standard network performance requirements. Negotiation of the terms and conditions for these services is subject to ElectraNet’s Negotiating Framework and Negotiated Transmission Service Criteria approved by the AER on the basis that the services can only be provided by ElectraNet. The negotiating framework and criteria were approved by the AER as part of its ElectraNet transmission determination dated 11 April 2008.
- Non-regulated (contestable) transmission services – these are services that ElectraNet is not obliged to provide and which are capable of being provided on a contestable basis by a range of suppliers. Commercial terms and conditions are negotiated between the parties for the provision of these services.
Prescribed Transmission Services
ElectraNet determines transmission service prices to recover the costs of providing prescribed (regulated) transmission services in South Australia in accordance with:
- the Australian Energy Regulator’s (AER) ElectraNet Transmission Determination 2008/09 - 2012/13 decision, dated 11 April 2008 as amended;
- the ACCC's Murraylink Transmission Company Application for Conversion and Maximum Allowed Revenue decision as revoked and substituted on 31 March 2004; and
- the applicable requirements of the Rules.
These transmission services prices have been calculated in accordance with ElectraNet’s revised proposed pricing methodology (which was approved by the AER in the determination of 11 April 2008) and the applicable requirements of the National Electricity Rules.
The NEW Transmission Service Prices have been determined to apply from 1 July 2010 to 30 June 2011.
The 2009-10 Transmission Service Price Schedule.
Co-ordinating Transmission Network Service Provider
Clause 6A.29.1 of the Rules provides that where there is more than one transmission network owner providing prescribed transmission services within the same region (which has been the case in South Australia since 1 October 2003), one of those transmission network owners must be appointed to recover the regulated revenue entitlements of both transmission network owners for that region.
ElectraNet is party to an agreement with the Murraylink Transmission Company ('MTC'), agent for the owners of the Murraylink interconnector, under which ElectraNet is:
- appointed as the co-ordinating transmission network service provider for South Australia; and
- is required to collect MTC's regulated revenue entitlement via ElectraNet's transmission services prices.
This arrangement for revenue collection is consistent with the provisions of the Rules.
Cost Allocation Methodology
For pricing purposes, ElectraNet allocates costs between different categories of transmission services (e.g. between prescribed and negotiated transmission services) in accordance with its Cost Allocation Methodology. ElectraNet’s cost allocation methodology, which was approved by the AER on 1 September 2008, gives effect to, and is consistent with, the provisions of the Rules and the AER’s Cost Allocation Guidelines for Electricity Transmission Network Service Providers.
