ESCOSA Projects

Advice on a Regulatory Rate of Return for SA Water

Tue, 21 Feb 2012 13:30:00 GMT

The Essential Services Commission of South Australia (the Commission) has been asked to provide advice to the Treasurer on a regulatory rate of return to apply to SA Water.

The Commission’s advice, which has been sought by the Treasurer pursuant to section 5(f) of the Essential Services Commission Act 2002 (ESC Act), is to be based on a pre-tax weighted average cost of capital (WACC), with the cost of equity derived from the Capital Asset Pricing Model (CAPM).

2012 Ports Pricing and Access Review

Thu, 16 Feb 2012 13:30:00 GMT

The Essential Services Commission of South Australia (the Commission) has commenced a review into the pricing and access regimes that apply to proclaimed ports in South Australia. The Commission is reviewing whether the ports pricing and access regimes specified in the Maritime Services (Access) Act 2000 should continue beyond 30 October 2012 for a further five-year period.

2012 AGL Special Circumstances Review

Wed, 15 Feb 2012 13:30:00 GMT

On 13 February 2012 the Commission received an application from AGL SA to re-open the Price Determination to adjust the tolerance band as a result of the introduction of a carbon price. The proposed adjustment to the tolerance band is intended to accommodate any impacts of the carbon pricing mechanism on market contract prices. In addition, on 23 December 2011, ETSA Utilities submitted a letter to the AER, giving notice of its intention to recover increased costs associated with administering the South Australian Feed-In Tariff Scheme.

To accommodate the increase in costs due to the carbon price and feed-in tariff, it is necessary to adjust the predetermined floor and ceiling thresholds for standing contract price movements. Therefore the Commission has determined that it is appropriate to conduct a limited reopening of the Price Determination, where only the parameters of the tolerance band (floor and ceiling) are to be reviewed.

Economic Regulation of the South Australian Water Industry

Wed, 08 Feb 2012 13:30:00 GMT

In December 2010, the Commission commenced a public consultation process to inform itself of the nature and form of the new water industry economic regulatory regime under the proposed new Water Industry Act. This consultative process will be a key driver of the form of economic regulatory regime to be developed and implemented by the Commission in accordance with the framework established by the South Australian Government.

2012 Determination of Solar Feed-in Tariff Premium

Thu, 26 Jan 2012 13:30:00 GMT

Recent changes to the feed-in tariff scheme have amended the amount that can be earned by customers that install eligible solar photo-voltaic (PV) generators. Customers with eligible PV generators are entitled to receive an additional premium, which has been determined by the Essential Services Commission. The amount reflects the fair and reasonable value to a retailer of electricity fed into the network, and all retailers selling electricity to eligible customers are required to pay the amount.

REES Proposed Code Amendments - 2011

Wed, 07 Dec 2011 13:30:00 GMT

The Residential Energy Efficiency Scheme Code (REES Code) was made by the Commission in December 2008 and commenced in January 2009 as an industry code pursuant to the powers of the Commission under section 28 of the Essential Services Commission Act 2002 (SA).

Following the completion of the Review of Energy Efficiency Activities in June 2011, the Commission has reviewed the format and content of the REES Code, proposing amendments. The amendments include the incorporation of new activities and changes to existing activity specifications, as well as general updates to improve compliance and updating standards, training and/or safety requirements.

Reliability Performance in Severe Weather Events

Wed, 23 Nov 2011 13:30:00 GMT

The Commission routinely monitors the reliability performance of the distribution network. The Commission regards it as important to review ETSA Utilities' performance for any significant weather event that may have resulted in a significant number of customers experiencing outages for extended periods of time.

Review of the Electricity Transmission Code

Thu, 22 Sep 2011 14:30:00 GMT

ElectraNet SA Pty Ltd (ElectraNet) operates the main electricity transmission network in South Australia and is required to comply with the Electricity Transmission Code (the code), which has been made by the Commission pursuant to Part 4 of the Essential Services Commission Act 2002 (ESC Act).

The code requires ElectraNet to maintain the specified level of reliability and supply restoration standards. These performance standards are reviewed periodically and as may be appreciated from the nature and scope of transmission operations, exit point reliability standards are one of the drivers of ElectraNet’s revenue requirements. As such, any changes to the exit point reliability standards over time will have cost implications for ElectraNet and therefore price implications for South Australian consumers.

ElectraNet's revenue allowance is determined by the Australian Energy Regulator (AER) who will be reviewing ElectraNet's revenue requirements during 2012-13 for the 5-year regulatory period commencing July 2013. The code exit point reliability standards are relevant to this review and outcomes from this review will influence ElectraNet's revenue submission to the AER.

Review of the Commission's Energy Licensing Documentation

Mon, 29 Aug 2011 14:30:00 GMT

The Commission has recently undertaken a review of the energy licensing documentation utilised by the Commission, which consists of the Advisory Bulletin, Electricity Licence Application Form and Gas Licence Application Form and has made various amendments to these documents.

The Commission has released a Statement of Reasons which sets out the context of the review and summarises the amendments that have been made to the energy licensing documentation.

Review of the Gas Regulatory Instruments to apply to Envestra for 2011 - 2016 Regulatory Period

Tue, 09 Aug 2011 14:30:00 GMT

The term of the current price regulation period for Envestra ends in June 2011, with the Australian Energy Regulator due to commence the process of establishing a new pricing regime for Envestra from September 2010. It is, therefore, appropriate for the Commission to review the regulatory instruments to apply to during the 2011-2016 regulatory period; namely the gas distribution licence held by Envestra Ltd, the Gas Distribution Code, the Gas Metering Code and Gas Industry Guideline No. 1.

Such a review was undertaken by the Commission in 2006 at the time the current price regulation regime was put in place.

The Commission has released its Final Decision and amended regulatory documents.