Our cost allocation

We have developed a Cost Allocation Method (CAM) document that outlines the methodologies it will utilise to allocate its shared (transmission and distribution) costs.

There are a number of costs within our business operations that cannot be easily allocated to either the transmission or distribution network. Such costs include the purchase and operation of computer systems, including payroll and financial systems, and the costs associated with the management and administration of the overall business. 

These costs can be considered to be shared, as they are required for the operation of both our transmission and distribution related activities.

We have responsibilities under the National Electricity Rules (NER) to allocate these shared business costs to either transmission or distribution related activities in accordance with the provisions outlined within the NER and the requirements of the Australian Energy Regulator.

The Australian Energy Regulator approved our CAM on 26 June 2015 and we will adopt this CAM for the allocation of shared costs from 1 July 2015.

A link to the current version of the CAM and the AER’s decision paper on the approval of the CAM is below.

Cost Allocation Method

AER Decision Paper