Review of South Australian Service Incentive Scheme
The term of the Service Incentive (SI) scheme, which provides a financial incentive to ETSA Utilities to improve its reliability and customer service performance, ends in June 2010.
As the current regulatory period comes to an end, the Commission considers it worthwhile to look back at various elements of the regulatory arrangements that applied to ETSA Utilities over this period, and to provide a summary of the outcomes of the regulatory regime that applied. The Information Paper has been developed to examine the performance of the SI scheme component of the SSF by reviewing the outcomes of the scheme on distribution network reliability and customer service performance for South Australian customers over the current regulatory period.
The Commission's 2005-2010 Electricity Distribution Price Determination (EDPD) for ETSA Utilities sought to establish a regulatory bargain between South Australian customers and ETSA Utilities, wherein the provision of a reasonable return on investment to ETSA Utilities was balanced with the need for ETSA Utilities to provide sustainable services at agreed standards as specified in the Service Standard Framework (SSF). The Service Incentive (SI) scheme which provides a financial incentive to ETSA Utilities to improve its reliability and customer service performance is a component of the SSF.
As the current regulatory period comes to an end, the Commission is reviewing various elements of the regulatory arrangements that applied to ETSA Utilities over this period. The Information Paper has been developed to examine the performance of the SI scheme component of the SSF by reviewing the outcomes of the scheme on distribution network reliability and customer service performance for South Australian customers over the 2005-2010 regulatory period.
As noted in the Information Paper, the Commission believes that the impact and effectiveness of the scheme needs to be assessed in the broader context of the entire SSF. To this end, the Commission will undertake a separate review of the SSF to establish whether or not its intended outcomes have been met.
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