The Australian Competition and Consumer Commission today issued its final decision in respect of the transmission ring fencing guidelines.
Under the National Electricity Code, the ACCC is responsible for the regulation of transmission revenues in the National Electricity Market. It has been progressively taking up these responsibilities from 1 July 1999.
As set out under the National Electricity Code, the ACCC has developed the guidelines to reinforce the effectiveness of the regulatory processes by limiting the ability of the Transmission Network Service Providers (TNSPs) to extend their monopoly powers from the network business to the contestable parts of the industry. In particular, the ACCC is seeking to ensure that regulated activities do not cross-subsidise contestable activities.
"There has been wide consultation with the TNSPs and other interested parties regarding all aspects of the guidelines", Mr John Martin, Commissioner with responsibility for energy matters, said today.
"The ACCC has been mindful of balancing its regulatory responsibilities with the costs of compliance. Ring fencing guidelines ensure that TNSPs' decisions and actions in competitive activities (such as retail supply) are based on access prices that are published and verifiable".
The final decision will be available on the ACCC's website (see below) or by contacting Ms Maxine Helming on (02) 6243 1246.