Classification Description Regulatory treatment Direct Standard Services We control control that are regulate service service central to these electricity services by supply and determining therefore prices or an relied on by overall cap most (if not on the all) amount of customers revenue such as that may be building and earned for maintaining all standard the shared control distribution services. network. The costs associated with these services are shared by all customers via their regular electricity bill. Alternative Customer We set control specific or service service customer specific requested prices to services. enable the These distributor services to recover may also the full cost have of each potential service for from provision customers on a that competitive service. basis rather than by the local distributor. Negotiated service Services we Distributors consider and require a customers less are able to prescriptive negotiate regulatory prices approach according because all to a relevant framework
Classification Description Regulatory treatment Direct control service Standard control service Services that are central to electricity supply and therefore relied on by most (if not all) customers such as building and maintaining the shared distribution network. We regulate these services by determining prices or an overall cap on the amount of revenue that may be earned for all standard control services. The costs associated with these services are shared by all customers via their regular electricity bill. 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 that service. Negotiated service Services we consider require a less prescriptive regulatory approach because all relevant Distributors and customers are able to negotiate prices according to a framework
AER%20-%20Final%20framework%20and%20approach%20for%20SA%20Power%20Networks%20-%20April%202014.docx