The electricity transmission network pricing conference was held in Melbourne on 14 and 15 December 1998. The conference was jointly organised by the ACCC and the University of Melbourne to facilitate the debate regarding network pricing arrangements and nodal pricing options in particular.
In September 1998 the ACCC engaged London Economics to undertake a review of electricity network pricing. The purpose of the review was to provide the ACCC with independent expert advice on the efficiency of the existing network pricing arrangements in the NEM and to provide proposals for improving these arrangements, both in the short term and in the longer term.
The ACCC released an issues paper relating to the network pricing Code changes, which NECA submitted to the ACCC on 26 July 1999 (and amended on 18 August) for authorisation and for acceptance as a variation to the access code.
The issues paper was intended to assist interested parties to participate in the ACCC's assessment of the authorisation application and the proposed variation to the access code.
The London Economics report examines nodal pricing and Transmission Congestion Contracts in the context of a longer term objective for the NEM. The paper also examines the efficiency implications of cost recovery for networks and those actions which can be implemented in the short term. These short term proposals could form part of a transitional path towards nodal pricing.