The Australian Competition and Consumer Commission today decided to adjust TransGrid's revenue cap to take into account its acquisition of the Snowy Mountains Hydro Electric Authority's transmission assets on 30 June 2002.
The resulting increases in TransGrid's revenue cap will be $11.18 million in 2002/03 and $11.16 million in 2003/04.
The ACCC regulates the revenue of each Transmission Network Service Provider in the National Electricity Market. The ACCC set TransGrid's regulated revenue on 25 January 2000 for the period 1 July 1999 to 30 June 2004. The National Electricity Code allows the ACCC to re-set a transmission network's regulated revenue where there has been a substantial change in the ownership of transmission assets.
TransGrid's new revenue cap will apply for the financial years 2002/03 and 2003/04. It will be a combination of the regulated revenues determined by the ACCC for TransGrid and SMHEA transmission assets plus an allowance for income tax payable by TransGrid.
The transfer of transmission assets was made in accordance with a Ministerial Transfer Order signed by the Commonwealth, New South Wales and Victorian Governments.