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.
2019-2022 Allowable Revenue and Forecast Capital Expenditure
On 15 March 2019 the Australian Energy Market Operator 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 and 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 decision. The submission period closed on 31 May 2019. We received seven submissions which are available below.
The ERA was required to publish its final determination by 14 June 2019. The final determination approved allowable revenue of $105.895 million and forecast capital expenditure of $66.324 million.