The Australian Competition and Consumer Commission today issued its Statement of Principles for the Regulation of Electricity Transmission Revenues (SRP).
The ACCC is responsible for regulating electricity transmission business revenues in the National Electricity Market. The SRP outlines the principles the ACCC will adopt in undertaking this role.
"Recent investment outcomes show around $4.6 billion either invested in transmission or allowed in ACCC's decisions. The initiatives outlined in the SRP aim to further underpin strong investment outcomes", an ACCC Commissioner, Mr Ed Willett, said.
"There are two main themes in the SRP. The first is to create greater investment certainty for transmission networks. We have done this by locking in existing asset valuations and by moving from an after the event assessment of new investment to an ex-ante approach.
"The second theme is to improve the incentive properties of the regulatory regime. The ACCC will more specifically rely on incentives to drive TNSP investment behaviour rather than detailed scrutiny of individual projects. The incentive regime proposed aims to encourage efficiency while balancing the provision of adequate service quality to consumers".
The issuing of the SRP is the culmination of a process which began in August 2003 to review the Draft Statement of Principles for the Regulation of Transmission Revenues (May 1999).