The Australian Competition and Consumer Commission has issued a determination granting authorisation* to a number of amendments relating to the Victorian transmission regulatory arrangements contained in the National Electricity Code.
The amendments will ensure that the code provides adequate recognition of the not-for-profit status of the Victorian Energy Networks Corporation (VENCorp) as well as clarifying its role. VENCorp is the statutory authority responsible for planning and directing new electricity transmission projects in Victoria.
In this case the amendments accommodate the unique regulatory arrangements in Victoria by allowing VENCorp to recover its actual costs through its transmission use of system charges.
"The ownership of transmission assets and the planning of new additions to the network are undertaken by separate bodies in Victoria. This is quite unique within the National Electricity Market. VENCorp does not own transmission assets itself and is required under its licence to pursue the most cost-effective new investment in Victoria’s transmission network.
“The code amendments recognise VENCorp’s not-for-profit structure which makes it unable to build contingency provisions into its forecast costs. The determination also maintains the arrangement of a commercially independent VENCorp and the benefits of sourcing new augmentations through competitive tenders", ACCC Commissioner responsible for energy matters, Mr Ed Willett, said today.