Distribution Pricing Principles Rule Change Request (September 2013)

Publication date: Wednesday, 18th September 2013.

In September 2013, a rule change request seeking to amend the distribution pricing rules in the National Electricity Rules was submitted to the Australian Energy Market Commission (AEMC). The rule change proposal encouraged the development of more efficient network charges that better allow consumers to respond in ways that minimise network costs over time while smoothing the transition for consumers. The proposed rule change sought to amend Chapter 6 of the National Electricity Rules to:

  • amend the existing distribution pricing principles so that Distribution Network Services Providers (DNSPs) set cost reflective network charges, and structure those charges, in a manner that reflects the long run marginal cost of providing network services;
  • require DNSPs to take into account the impacts on consumers of more efficient and flexible network structures and charges;
  • require DNSPs to provide a statement of the way they propose to structure their network charges in the form of a pricing structures statement; and
  • require DNSPs to consult formally with stakeholders when developing their network prices and charging structures during the regulatory proposal stage.

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