The purpose of the derogation is to amend the existing Victorian derogations contained in chapter 9 of the National Electricity Code (code) in order to clarify arrangements for transmission pricing in Victoria. The amendment seeks to ensure that VENCorp is able to recover its costs in full during a regulatory period, as contemplated by the previous Victorian regulatory arrangements and set out in principle in the existing derogations.
The derogations have minimal anti-competitive detriment and have several benefits including clarifying VENCorp's ability to recover costs during a regulatory period.
