Transmission Pricing

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’s allowed revenue for the provision of prescribed transmission services is set by the AER. ElectraNet also acts as the coordinating transmission network service provider in South Australia, recovering revenue for prescribed transmission services on behalf of all transmission network service providers in the region (see further information below). Each year, ElectraNet determines and publishes prices to recover the costs of providing prescribed transmission services in South Australia in accordance with:

Transmission prices are as follows:

The 2008-09 Transmission Service Price Schedule is effective from 1 July 2008.

The 2007-08 Transmission Service Price Schedule was effective from 1 July 2007 to 30 June 2008.

ElectraNet has applied the Transmission Pricing Methodology followed in previous years in determining the prices to apply from 1 July 2008. The Revised Proposed Pricing Methodology approved by the AER in its transmission determination of 11 April 2008 will be used for the first time in determining prescribed transmission service prices to apply from 1 July 2009.

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 all 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.