We operate in a highly regulated business environment that is constantly changing. As a participant in the National Electricity Market (NEM), we're required to develop, operate and maintain our transmission system in accordance with the National Electricity Rules (NER) and meet the requirements of the local jurisdiction. We're subject to a number of industry-specific Tasmanian Acts and regulations including the:
- Tasmanian Electricity Supply Industry Act 1995;
- Electricity Industry Safety and Administration Act 1997;
- Electricity Companies Act 1997;
- Electricity Wayleaves and Easements Act 2000;
- Electricity Ombudsman Act 1998; and
- Tasmanian Electricity Supply Industry (Network Performance Requirements) Regulations 2007.
The Australian Energy Regulator (AER) is responsible for the regulation of electricity transmission services in the NEM. We contribute to the development of industry policy, market arrangements and other regulations to maximise the long-term interests of electricity consumers, shareholders, stakeholders and other interested players.
The AER also is responsible for determining the maximum allowable revenue for regulated electricity network service providers. Full details of Transend's revenue determination are available on AER's website.
Expenditure Forecasting Methodology
In 2014 we will submit revenue proposals to the Australian Energy Regulator. These proposals will outline our revenue requirements to efficiently run the Tasmanian electricity transmission system from 1 July 2014 to 30 June 2019. Following review and consultation, the AER will make decisions that will determine transmission revenue and impact on our transmission prices until 30 June 2019.
Our revenue proposals set out what we need to spend on capital works and to efficiently operate our business. These plans will reflect our continued focus on sustainably minimising costs to customers, including efficiencies from merging Transend’s transmission business with Aurora Energy’s distribution business to form TasNetworks from 1 July 2014.
Before we submit our revenue proposals we advise the AER on the best way to forecast our operating and capital expenditure requirements. Our Expenditure Forecasting Methodology (PDF, 911.1 KB) has been submitted to the Australian Energy Regulator as a step in our revenue proposal preparations.
Informing and gathering feedback from customers and consumers is embedded in the way we develop our expenditure forecasts. If you have any feedback for us on our forecasting methodology, we would like to hear from you. If you would like further information about the methodology, or the revenue reset process, please contact our project manager, Michael Seddon, on (03) 6274 3857.
Transend's Cost Allocation Methodology
In accordance with the National Electricity Rules, a Transmission Network Service Provider (TNSP) must maintain a current copy of its approved cost allocation methodology on its website.