ACCC issues final decision on Information Requirements Guidelines

The Australian Competition and Consumer Commission today issued its final decision in respect of the Information Requirements Guidelines.

Under the National Electricity Code, the ACCC is responsible for the regulation of transmission revenues in the National Electricity Market. It has been progressively taking up these responsibilities from 1 July 1999.

As envisaged under the National Electricity Code, the ACCC has developed the guidelines to reinforce the effectiveness of the regulatory processes by limiting the ability of the Transmission Network Service Providers (TNSPs) to extend their monopoly powers from the network business to the contestable parts of the industry. In particular, the ACCC is seeking to ensure that regulated activities do not cross-subsidise contestable activities.

Consequently, the Code requires TNSPs to separate out prescribed and non-prescribed services when performing their regulatory accounting. TNSPs are also required to reasonably allocate costs that are shared between prescribed services and any other activities.

The accounting separation requirements are reflected in the decision. The Information Requirements Guidelines are to be read in conjunction with the Transmission Ring Fencing Guidelines which will be issued shortly, and the Service Standards Guidelines which are being developed.

There has been wide consultation with the TNSPs regarding all aspects of the guidelines. The ACCC has been mindful of balancing its regulatory responsibilities with the costs of compliance. Information provided by the regulated TNSP will form the basis of the ACCC's revenue cap decisions. The ACCC will also use its information gathering powers to annually monitor the TNSP's compliance with its revenue cap.

The final decision is available by contacting Ms Stacey Breen on (02) 6243 1246.