submissions. We will make a final determination on the proposed Tariff Structure Statement in July 2016. What happens after a Tariff Structure Statement is approved? Once approved, a Tariff Structure Statement will remain in effect for the relevant regulatory period. The distributor must comply with the approved Tariff Structure Statement when setting prices annually for direct control services. We will separately assess the distributor's annual tariff proposals for the coming 12 months. Our assessment of annual tariff proposals will be consistent with the requirements of the relevant approved Tariff Structure Statement. An approved Tariff Structure Statement may only be amended within a regulatory period with our approval. We will approve an amendment if the distributor demonstrates that an event has occurred that was beyond its control and which it could not have foreseen so that the amended Tariff Structure Statement materially better complies with the distribution pricing principles. Victorian Government's authority to amend the National Electricity Rules or add further regulatory requirements The National Electricity Law (NEL) is contained in a Schedule to National Electricity (South Australia) Act 1996 and has been adopted by each of the participating jurisdictions in the National Electricity Market. This is done by State application statutes, which vary from state to state. In Victoria, the National Electricity (Victoria) Act 2005 (NEVA) applies the National Electricity Law and National Electricity Rules as Victorian legislation. However, under the NEVA, the Victorian Government can modify the NEL and the Rules by Ministerial Order. We are required to regulate applying the NEL and the Rules as they pertain to each particular jurisdiction. As explained above, we have received notification from the Victorian Minister for Energy and Resources of her intention to require Victorian distributors to implement changes to distribution network pricing arrangements by way of Ministerial Order. The AER may only approve a Tariff Structure Statement that complies with the Rules and all applicable regulatory instruments.
submissions. We will make a final determination on the proposed Tariff Structure Statement in July 2016. What happens after a Tariff Structure Statement is approved? Once approved, a Tariff Structure Statement will remain in effect for the relevant regulatory period. The distributor must comply with the approved Tariff Structure Statement when setting prices annually for direct control services. We will separately assess the distributor's annual tariff proposals for the coming 12 months. Our assessment of annual tariff proposals will be consistent with the requirements of the relevant approved Tariff Structure Statement. An approved Tariff Structure Statement may only be amended within a regulatory period with our approval. We will approve an amendment if the distributor demonstrates that an event has occurred that was beyond its control and which it could not have foreseen so that the amended Tariff Structure Statement materially better complies with the distribution pricing principles. Victorian Government's authority to amend the National Electricity Rules or add further regulatory requirements The National Electricity Law (NEL) is contained in a Schedule to National Electricity (South Australia) Act 1996 and has been adopted by each of the participating jurisdictions in the National Electricity Market. This is done by State application statutes, which vary from state to state. In Victoria, the National Electricity (Victoria) Act 2005 (NEVA) applies the National Electricity Law and National Electricity Rules as Victorian legislation. However, under the NEVA, the Victorian Government can modify the NEL and the Rules by Ministerial Order. We are required to regulate applying the NEL and the Rules as they pertain to each particular jurisdiction. As explained above, we have received notification from the Victorian Minister for Energy and Resources of her intention to require Victorian distributors to implement changes to distribution network pricing arrangements by way of Ministerial Order. The AER may only approve a Tariff Structure Statement that complies with the Rules and all applicable regulatory instruments.
AER%20Draft%20decision%20-%20United%20Energy%20Tariff%20Structure%20Statement%20-%2022%20February%202016.docx