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Allowable Revenue and Forecast Capital Expenditure Determinations

The Wholesale Electricity Market Rules and the Gas Services Information Rules set out the requirement that the allowable revenue and forecast capital expenditure for service providers must consist only of costs that would be incurred by a prudent service provider, acting efficiently, and seeking to achieve the lowest practically sustainable cost of delivering the services in accordance with the Market Rules, while also effectively promoting the market objectives. Once approved, the service provider can recover costs from market participants through market fees. These costs are eventually passed through to consumers.

2019-2022 Allowable Revenue and Forecast Capital Expenditure

On 15 March 2019, AEMO submitted its proposal for allowable revenue of $104.241 million, and forecast capital expenditure of $78.477 million for the period 1 July 2019 to 30 June 2022 which covers AEMO’s function in the wholesale electricity and gas markets.

We received seven submissions, including two late submissions in response to our issues paper that we published on 20 March 2019.

On 8 May we published our draft determination. The submission period closed on 31 May 2019. We received seven submissions.

The ERA published its final determination on 14 June 2019. The final determination approved allowable revenue of $105.895 million and forecast capital expenditure of $66.324 million.

In period funding request 2020

On 25 September 2020, AEMO applied for additional forecast capital of $18.9 million to cover new obligations assigned to AEMO through the State Government's Distributed Energy Resources Roadmap. In November, AEMO revised this proposal to $17.9 million.

On 9 November 2020, the ERA published a draft findings report covering its initial observations about AEMO’s application. 

The consultation period closed on Friday, 20 November 2020. Six submissions were received.

On 17 December 2020, the ERA published its determination, which approved additional forecast capital expenditure of $14.6 million.

2020 in-period adjustment - Papers

Date Documents File type
17-Dec-20 Determination
Adobe PDF 548 kB

09-Nov-20 Draft findings report
Adobe PDF 395 kB

29-Sep-20 AEMO adjustment proposal
Adobe PDF 3 MB

2020 in-period adjustment - Public submissions

Date Documents File type
24-Nov-20 Summit Southern Cross Power (SSCP)
Adobe PDF 427 kB

23-Nov-20 Australian Energy Council
Adobe PDF 179 kB

23-Nov-20 Australian Energy Market Operator (AEMO)
Adobe PDF 1 MB

23-Nov-20 Energy Networks Australia
Adobe PDF 745 kB

23-Nov-20 Synergy
Adobe PDF 182 kB

23-Nov-20 Western Power
Adobe PDF 481 kB

Allowable revenue period 2019 to 2022 - Papers

Date Documents File type
14-Jun-19 Final Determination
Adobe PDF 830 kB

14-Jun-19 Consultant Report - Intelligent Energy Systems
Adobe PDF 777 kB

14-Jun-19 Consultant Report - The Lantau Group
Adobe PDF 1 MB

08-May-19 Draft Determination
Adobe PDF 631 kB

20-Mar-19 Issues Paper
Adobe PDF 531 kB

20-Mar-19 AEMO proposal
Adobe PDF 3 MB

Allowable revenue period 2019 to 2022 - Public submissions - Draft Determination

Date Documents File type
05-Jun-19 AEMO - Legal reasoning submission
Adobe PDF 797 kB

04-Jun-19 AEMO - Draft decision submission
Adobe PDF 858 kB

04-Jun-19 Australian Energy Council (AEC)
Adobe PDF 60 kB

04-Jun-19 Bluewaters Power
Adobe PDF 678 kB

04-Jun-19 NewGen Power Kwinana
Adobe PDF 273 kB

04-Jun-19 Perth Energy
Adobe PDF 685 kB

04-Jun-19 Power Systems Consultants Australia
Adobe PDF 32 kB

Allowable revenue period 2019 to 2022 - Public submissions - Issues Paper

Date Documents File type
18-Apr-19 Australian Energy Council (AEC)
Adobe PDF 271 kB

18-Apr-19 Bluewaters Power
Adobe PDF 284 kB

18-Apr-19 Chamber of Commerce and Industry WA (CCIWA)
Adobe PDF 2 MB

18-Apr-19 Minister for Mines and Petroleum; Energy; Industrial Relations
Adobe PDF 11 MB

18-Apr-19 NewGen Power Kwinana Pty Ltd
Adobe PDF 159 kB

18-Apr-19 Perth Energy
Adobe PDF 717 kB

18-Apr-19 Synergy
Adobe PDF 167 kB

18-Apr-19 Western Power
Adobe PDF 3 MB

Page last updated: 12 May 2021