SAPN appeal to increase transmission costs rejected

A decision by the Australian Energy Regulator (AER) has been upheld by the Australian Competition Tribunal today.

South Australian Power Networks’ (SAPN) appealed to the Tribunal to overturn AER’s ruling that it could not increase revenue it could recover from consumers.

In October 2015, the AER allowed SAPN to recover $3.8 billion from its customers during a five-year period backdated to July 1, 2015.

SAPN appealed to the Tribunal to recover $250 million for additional bushfire safety, financing and labour costs, aruging the AER had made errors in its decision.

AER Chair Paula Conboy welcomed the decision.

“The Tribunal found no errors in our decision on the amounts SAPN needs to run safe and reliable electricity services,” Ms Conboy said.

“We understand electricity bills are a concern to many households and businesses in South Australia.

“Distribution charges make up about 38 per cent of the bill of SA Power Networks’ typical residential customers.

“Today’s decision will help provide some predictability and stability in distribution network prices over the next four years.”

The AER regulates energy markets and networks under national legislation and rules in eastern and southern Australia, as well as networks in the Northern Territory.