Incentive schemes The AER determines that the efficiency benefit sharing scheme (EBSS) that will apply to Ausgrid for the transitional regulatory control period is that applied to Ausgrid in the current regulatory control period, with modifications to align it with version 2 of the EBSS and applied as if the transitional regulatory control period was the first year of the subsequent regulatory control period. This is consistent with the Stage 2 framework and approach paper. The AER determines that no: capital expenditure sharing scheme (CESS), or scale investment scheme, is to apply to Ausgrid in the transitional regulatory control period. The AER determines that Part A of the demand management innovation allowance (DMIA), which applied to Ausgrid in the current regulatory control period, applies to Ausgrid in the transitional regulatory control period. However, Part B of the DMIA and the D-Factor scheme for NSW distributors do not apply in the transitional regulatory control period. The DMIA is a component of the demand management incentive scheme (DMIS). The rules have since changed the name from DMIS to demand management and embedded generation connection incentive scheme (DMEGCIS). The revenue rewards and penalties of the service target performance incentive scheme (STPIS) did not apply to Ausgrid in the current regulatory control period and the AER determines that they will not apply in the transitional regulatory control period. However, the reporting obligations did apply in the current regulatory control period and the AER determines that they continue to apply. Appropriate amounts, values or inputs The AER determines that all appropriate amounts, values and inputs are as set out in this determination. Control mechanisms Standard control services The relevant control mechanism and formulae for standard control services is as set out in the Stage 1 framework and approach paper. The AER determines to apply a revenue cap with a basis of CPI-X form to standard control services for the transitional regulatory control period. Alternative control services The AER determines to price cap regulation to alternative control services in the transitional regulatory control period. Alternative control service prices in the transitional regulatory control period must be the current prices escalated by CPI. The AER determines to the following formulae to alternative control services, which remain classified as alternative control services. The AER considers that the formula gives effect to the cap on the prices of individual services: i=1,...,n and t=1,2,3,4
Incentive schemes The AER determines that the efficiency benefit sharing scheme (EBSS) that will apply to Ausgrid for the transitional regulatory control period is that applied to Ausgrid in the current regulatory control period, with modifications to align it with version 2 of the EBSS and applied as if the transitional regulatory control period was the first year of the subsequent regulatory control period. This is consistent with the Stage 2 framework and approach paper. The AER determines that no: capital expenditure sharing scheme (CESS), or scale investment scheme, is to apply to Ausgrid in the transitional regulatory control period. The AER determines that Part A of the demand management innovation allowance (DMIA), which applied to Ausgrid in the current regulatory control period, applies to Ausgrid in the transitional regulatory control period. However, Part B of the DMIA and the D-Factor scheme for NSW distributors do not apply in the transitional regulatory control period. The DMIA is a component of the demand management incentive scheme (DMIS). The rules have since changed the name from DMIS to demand management and embedded generation connection incentive scheme (DMEGCIS). The revenue rewards and penalties of the service target performance incentive scheme (STPIS) did not apply to Ausgrid in the current regulatory control period and the AER determines that they will not apply in the transitional regulatory control period. However, the reporting obligations did apply in the current regulatory control period and the AER determines that they continue to apply. Appropriate amounts, values or inputs The AER determines that all appropriate amounts, values and inputs are as set out in this determination. Control mechanisms Standard control services The relevant control mechanism and formulae for standard control services is as set out in the Stage 1 framework and approach paper. The AER determines to apply a revenue cap with a basis of CPI-X form to standard control services for the transitional regulatory control period. Alternative control services The AER determines to price cap regulation to alternative control services in the transitional regulatory control period. Alternative control service prices in the transitional regulatory control period must be the current prices escalated by CPI. The AER determines to the following formulae to alternative control services, which remain classified as alternative control services. The AER considers that the formula gives effect to the cap on the prices of individual services: i=1,...,n and t=1,2,3,4
AER%20-%20Placeholder%20determination%20Ausgrid%20-%2016%20April%202014.DOCX