The Electricity Networks Access Code 2004 (Access Code) provides the framework for preparing, approving and reviewing an access arrangement for a regulated network. While progressing other changes to the Access Code, it is opportune to progress measures that improve the access arrangement process.
On 20 May 2020, Project Leads from the Energy Transformation Implementation Unit presented on the proposed changes to the Access Code which seek to improve the access arrangement process. A recording of the presentation is available below.
To find out more about other proposed changes to the Access Code, click on the cards below.
Introducing a Framework and Approach
Show moreCurrently, for each access arrangement Western Power must propose measures relating to its target revenue (including the form of price control, incentive mechanisms and the tariff equalisation contribution). The ERA is required to assess and approve these measures where they satisfy the requirements of the Access Code. The ERA can reject or modify the proposed incentive mechanisms, but currently cannot propose or approve a more effective mechanism.
The proposed changes to the Access Code require the ERA to produce a Framework and Approach document that sets out which services will be regulated and the broad nature of any regulatory arrangements. The objective of the Framework and Approach process is to facilitate early public consultation and stakeholder agreement on incentive mechanisms and reference services.
Providing flexibility in the access arrangement timeframes
Show moreThe Access Code currently requires a service provider to submit its revised access arrangement proposal no later than six months before the commencement date of the next access arrangement period.
As a result of this short timeframe, extensions to each stage in the process are common, and access arrangement periods typically commence after the target revisions commencement date.
Under the proposed Access Code changes, rather than set prescriptive timeframes for each stage, minimum timeframes for public consultation and a date for the final decision will be defined.
These amendments will assist the ERA to manage the approval process and set the appropriate timeframes for public consultation proportionate to the issues being addressed. The changes should also reduce the incidence of extensions to the process and afford the ERA and Western Power additional time to prepare and submit documentation.
Other changes to the access arrangement process
Show moreOther changes include introducing a formal step allowing Western Power to provide additional information to the ERA in response to stakeholder feedback (ensuring the ERA has sufficient information to address these issues). This step is intended to provide a transparent process through which unexpected and/or complicated issues can be resolved as part of the process.
It is also proposed that the formal setting of the tariff Price List be moved to after the access arrangement final decision. The intent of this proposal is to focus the decision-making process on allowed capital and operational expenditure and Western Power’s target or allowed revenue.
Indicative pricing will be included in the Draft and Final decisions.
