Projects

Review of the Electricity Transmission Code

Stage:
Final
Released:
06 Mar 2012
Closes:
06 Mar 2012
Project Type:
Code & guideline development
Contact Person:
Stuart McPherson

ElectraNet SA Pty Ltd (ElectraNet) operates the main electricity transmission network in South Australia and is required to comply with the Electricity Transmission Code (the code), which has been made by the Commission pursuant to Part 4 of the Essential Services Commission Act 2002 (ESC Act).

The code requires ElectraNet to maintain the specified level of reliability and supply restoration standards.  These performance standards are reviewed periodically and as may be appreciated from the nature and scope of transmission operations, exit point reliability standards are one of the drivers of ElectraNet’s revenue requirements. As such, any changes to the exit point reliability standards over time will have cost implications for ElectraNet and therefore price implications for South Australian consumers.

ElectraNet's revenue allowance is determined by the Australian Energy Regulator (AER) who will be reviewing ElectraNet's revenue requirements during 2012-13 for the 5-year regulatory period commencing July 2013. The code exit point reliability standards are relevant to this review and outcomes from this review will influence  ElectraNet's revenue submission to the AER.

The Commission  requested the Australian Energy Market Operator (AEMO) to review  the exit point reliability standards in the Electricity Transmission Code as a prelude to consulting publicly on any proposed code changes to the code. The completed AEMO review was provided to the Commission on 23 December 2010.

Based on the information and recommendations in AEMO's review, the Commission has developed an Issues Paper "Review of the Electricity Transmission Code" dated April 2011 for consultation on changes proposed by AEMO to the code.  The code review will assist ElectraNet in formulating its revenue reset submission to the AER for the 2013-2018 regulatory period.

The Commission seeks comment on the Issues set out in the Issues Paper from all interested parties.  The Issues Paper will be open for public consultation until Wednesday 25 May 2011.

Following the period of public consultation, and after consideration of any comments received, the Commission will prepare a draft decision on the proposed changes to the Electricity Transmission Code.

The Commission expects to publish its draft decision by July 2011 for further public comment before finalising the code changes by the end of October 2011. The final code changes will take effect from 1 July 2013.

Publications

The Commission requested the Australian Energy Market Operator (AEMO) to review  the exit point reliability standards in the Electricity Transmission Code as a prelude to consulting publicly on any proposed code changes to the code. The completed AEMO review was provided to the Commission on 23 December 2010.

Based on the information and recommendations in AEMO's review, the Commission  released an Issues Paper "Review of the Electricity Transmission" dated April 2011 for consultation on changes proposed by AEMO to the code.  The code review will assist ElectraNet in formulating its revenue reset submission to the AER for the 2013-2018 regulatory period.

Following the period of consultation on the Issues Paper, the Commission reviewed the submissions received from interested parties. After considering the comments received in the submissions, the Commission has released its Draft Decision and a draft version of the Electricity Transmission Code incorporating the amendments resulting from the consultation process.

The Commission seeks comment on the Draft Decision from all interested parties.  The Draft Decision will be open for public consultation until Friday 21 October 2011.

Following the period of public consultation, and after consideration of any comments received, the Commission will prepare its final decision on the proposed changes to the Electricity Transmission Code.

Due to late submissions, the Final Decision will be published in February 2012. The final Code changes will take effect from 1 July 2013.

Publications

Following the period of public consultation on the Draft Decision and draft version of the code, the Commission considered the  comments received in submissions from interested parties and has released its Final Decision on the review of the code.

The  Electricity Transmission Code, version TC/07, incorporating the Commission's final decisions, will take effect on and from 1 July 2013.

Publications