The Australian Competition and Consumer Commission today issued for public comment an issues paper on applying the model for regulating transmission companies' revenue under the National Electricity Code (NEC).
The Statement of Regulatory Intent Issues Paper raises several important issues relating to the determination of the maximum allowable revenues of electricity transmission companies, efficiency incentives, service standards, information disclosure requirements to the ACCC, and 'ring- fencing' requirements.
The regulatory framework is designed to reduce the cost of electricity by forcing the allowed revenue of transmission companies down in line with efficiency gains which the ACCC believes the companies can achieve, while maintaining service standards. Consistent with the ACCC's well established consultative processes, the paper calls for interested parties to make submissions on the issues raised.
Submissions are requested by 26 June. The paper is available from the ACCC's web site, http://www.accc.gov.au, or from any ACCC office in each capital city, Townsville and Tamworth.