Alternative Customer We set control specific or service service customer specific requested prices to services. enable the These distributor services may to recover also have the full cost potential for of each provision on service a competitive from basis rather customers than by the using that local service. distributor. Negotiated service Services we Distributors consider and require a less customers prescriptive are able to regulatory negotiate approach prices because all according relevant to a parties have framework sufficient established countervailing by the market power NER. We to negotiate are the provision available to of those arbitrate if services. necessary. Unclassified Services that We have service are not no role in distribution regulating services or these services that services. are contestable. Source: AER Our preliminary position is to change the classification of some NSW distribution services for the 2019−24 regulatory control period. While we propose to retain the existing service classifications for most services, we intend to clarify service descriptions to better align with the services being provided, create consistency across jurisdictions as far as practicable and predictability in how new distribution services might be classified. Our proposed service classifications for the NSW network businesses are set out in figure 1
Alternative control service Customer specific or customer requested services. These services may also have potential for provision on a competitive basis rather than by the local distributor. We set service specific prices to enable the distributor to recover the full cost of each service from customers using that service. Negotiated service Services we consider require a less prescriptive regulatory approach because all relevant parties have sufficient countervailing market power to negotiate the provision of those services. Distributors and customers are able to negotiate prices according to a framework established by the NER. We are available to arbitrate if necessary. Unclassified service Services that are not distribution services or services that are contestable. We have no role in regulating these services. Source: AER Our preliminary position is to change the classification of some NSW distribution services for the 2019−24 regulatory control period. While we propose to retain the existing service classifications for most services, we intend to clarify service descriptions to better align with the services being provided, create consistency across jurisdictions as far as practicable and predictability in how new distribution services might be classified. Our proposed service classifications for the NSW network businesses are set out in figure 1
AER%20-%20Preliminary%20framework%20and%20approach%20for%20NSW%20electricity%20distributors%202019-24%20-%20March%202017_0.DOCX