We have amended the RIN instructions and template to make the above clearer. Tab 2.8 Overheads require the following data: Powerlink commented that its overhead costs are applied in Overheads before they are allocated and capitalised, i.e. strip back allocated overheads accordance with the AER approved Powerlink CAM. It is unclear what and place them back in the overhead cost pool 2.8 Tx Overhead cost allocation is intended to be reported. Further clarification is required. Opex that is capitalised (Submission p. 3) Related-party expenditure (a subset of total opex) Comparing the total overhead cost pools before these are allocated to direct cost categories is expected to address the problem of different approaches by NSPs to cost ElectraNet notes that the AER will not prescribe a standardised cost allocation. allocation method and NSPs are to report consistent with their current methods and policies. This will make it difficult for the AER to make Data for negotiated and unregulated services are required only for reconciliation with Cost comparison; any meaningful cost comparisons between NSPs. It questions why the annual regulatory reports, and no detail is needed aside from total Negotiated Services 2.8 Tx AER require negotiated and un-regulated costs as well. Cost and total Unregulated Services. Capitalisation comparison should only be related to regulated costs. ElectraNet is Capitalised opex means opex that may be significant/material and the business unaware of the meaning of capitalised maintenance support. decides to classify this as capex based on its capitalisation policy. (Submission, spreadsheet)
We have amended the RIN instructions and template to make the above clearer. 2.8 Tx Overhead cost allocation Powerlink commented that its overhead costs are applied in accordance with the AER approved Powerlink CAM. It is unclear what is intended to be reported. Further clarification is required. (Submission p. 3) Tab 2.8 Overheads require the following data: Overheads before they are allocated and capitalised, i.e. strip back allocated overheads and place them back in the overhead cost pool Opex that is capitalised Related-party expenditure (a subset of total opex) 2.8 Tx Cost comparison; Capitalisation ElectraNet notes that the AER will not prescribe a standardised cost allocation method and NSPs are to report consistent with their current methods and policies. This will make it difficult for the AER to make any meaningful cost comparisons between NSPs. It questions why the AER require negotiated and un-regulated costs as well. Cost comparison should only be related to regulated costs. ElectraNet is unaware of the meaning of capitalised maintenance support. (Submission, spreadsheet) Comparing the total overhead cost pools before these are allocated to direct cost categories is expected to address the problem of different approaches by NSPs to cost allocation. Data for negotiated and unregulated services are required only for reconciliation with annual regulatory reports, and no detail is needed aside from total Negotiated Services and total Unregulated Services. Capitalised opex means opex that may be significant/material and the business decides to classify this as capex based on its capitalisation policy.
AER%20explanatory%20statement%20-%20final%20category%20analysis%20RINs.DOCX