South Australian Numbered Acts South Australian Numbered Acts8—Amendment of the NEL— Section 7 substituted and new
section 7A inserted
NEL—delete section 7 and substitute:
7—National electricity objective
The objective of this Law is to promote efficient investment in, and efficient
operation and use of, electricity services for the long term interests of
consumers of electricity with respect to—
(a)
price, quality, safety, reliability and security of supply of electricity; and
(b) the
reliability, safety and security of the national electricity system.
7A—Revenue and pricing principles
(1) The revenue and
pricing principles are the principles set out in subsections (2) to (7).
(2) A regulated
network service provider should be provided with a reasonable opportunity to
recover at least the efficient costs the operator incurs in—
(a)
providing direct control network services; and
(b)
complying with a regulatory obligation or requirement or making a regulatory
payment.
(3) A regulated
network service provider should be provided with effective incentives in order
to promote economic efficiency with respect to direct control network services
the operator provides. The economic efficiency that should be promoted
includes—
(a)
efficient investment in a distribution system or transmission system with
which the operator provides direct control network services; and
(b) the
efficient provision of electricity network services; and
(c) the
efficient use of the distribution system or transmission system with which the
operator provides direct control network services.
(4) Regard should be
had to the regulatory asset base with respect to a distribution system or
transmission system adopted—
(a) in
any previous—
(i)
as the case requires, distribution determination or
transmission determination; or
(ii)
determination or decision under the National Electricity
Code or jurisdictional electricity legislation regulating the revenue earned,
or prices charged, by a person providing services by means of that
distribution system or transmission system; or
(b) in
the Rules.
(5) A price or charge
for the provision of a direct control network service should allow for a
return commensurate with the regulatory and commercial risks involved in
providing the direct control network service to which that price or charge
relates.
(6) Regard should be
had to the economic costs and risks of the potential for under and over
investment by a regulated network service provider in, as the case requires, a
distribution system or transmission system with which the operator provides
direct control network services.
(7) Regard should be
had to the economic costs and risks of the potential for under and over
utilisation of a distribution system or transmission system with which a
regulated network service provider provides direct control network services.