If that index ceases to be published or is substantially changed, CPI will be such other index as is determined by the Commission as a suitable benchmark for recording general movements in prices. cost pass though The mechanism for reviewing and adjusting this Network Price Determination to pass through to network users an amount incurred or saved during the 2014 – 19 regulatory control period as a consequence of the occurrence of a pass through event. credit support A security supporting the obligations of a retailer to PWC Networks. electricity network Has the meaning given in the Network Access Code (this term is equivalent to the term 'distribution system ' used in the NER). eligible pass through amount In respect of a positive change event, the increase in costs in the provision of regulated network access services that, as a result of that positive change event, PWC Networks has incurred and is likely to incur (as opposed to the revenue impact of that event) until: (a) unless subparagraph (b) applies – the end of 2014 – 19 regulatory control period; or (b) if Post 2019 Network Price Determination does not make any allowance for the recovery of that increase in costs (whether or not in the forecast operating expenditure or forecast capital expenditure accepted or substituted by the Commission for the Post 2019 regulatory control period) – the end of the Post 2019 regulatory control period. excluded network access services The network access services specified in Schedule 3 of this Network Price Determination which are services supplied by PWC Networks for which the associated costs and revenue are excluded from this Network Price Determination. extension Has the meaning in the Network Access Code. Framework Statement The '2014-2019 Network Price Determination – Framework and Approach' decision paper published by the Commission in November 2012. generally accepted regulatory practice The conventions, rules and procedures in use at a particular time by leading jurisdictional regulators in Australia when choosing and applying economic regulation methodologies to a power system for the generation, transmission, distribution and supply of electricity and consistent with applicable laws. generator user Has the meaning in the Network Access Code. GSL or guaranteed service level The minimum guaranteed service level which retail customers are entitled to receive from PWC Networks, as defined in the GSL Code.
GSL Code Guaranteed Service Level Code which took effect from 1 January 2012 as amended from time to time. GSL payment A payment made, or required to be made, by PWC Networks to a retail customer when the retail customer received service at a worse than the prescribed GSL. PWC Networks must make GSL payments in accordance with the GSL Code. insurance event An insurer credit risk event or a liability above insurance cap event. insurer credit risk event The insolvency of a nominated insurer of PWC Networks, as a result of which PWC Networks: (a) incurs materially higher or lower costs for insurance premiums than those allowed for in the 2014 Network Price Determination; and (b) (in respect of a for a risk that would have been insured by that insurer) is subject to a materially higher or lower claim limit or a materially higher or lower deductible than would have applied under the policy but for the insolvency of that insurer. liability insurance cap event Any beyond the control of PWC Networks for which external insurance has been provided and the loss suffered by PWC Networks as a result of the occurrence of that event exceeds the policy limit under that insurance and the excess loss borne by PWC Networks materially increases the costs to PWC Networks of providing the regulated network access services. maintenance costs Is used in this Network Price Determination to describe expenditure relating to the maintenance of the PWC Networks electricity network. materially For the purposes of the application of clause 3.1 of the 2014 Network Price Determination, an event results in PWC Networks incurring materially higher or materially lower costs if the change in costs (as opposed to the revenue impact) that PWC Networks incurred and is likely to incur in any regulatory year in the 2014 – 19 regulatory control period, as a result of that event, exceeds 1 per cent of the annual revenue requirement for that regulatory year. natural disaster event Any fire, flood, earthquake or other natural disaster beyond the reasonable control of PWC Networks (but excluding those events for which external insurance or self-insurance has been included within PWC Networks' forecast operating expenditure) that occurs during the 2014 – 19 regulatory control period and materially increases the costs to PWC Networks of providing the regulated network access services. negative change A pass through which entails PWC Networks incurring materially lower costs in providing the regulated network access services than it would have incurred but for that event.
number of decimal places, required by PWC Networks’ charging and billing systems; a tariff that has been calculated and rounded under the principles in clause (xv) must not be rounded to a different level of accuracy when utilised in calculations made under this Network Price Determination; when a calculation is required under this Network Price Determination: regulatory year "t" is the regulatory year in respect of which the calculation is being made; regulatory year "t-1" is the regulatory year immediately preceding regulatory year "t”; regulatory year “t-2” is the regulatory year immediately preceding regulatory year “t-1”; regulatory year “t-i” is the regulatory year that is i years preceding regulatory year t; and regulatory year “t-i-j” is the regulatory year that is j preceding regulatory year t-i; and for the purposes of calculating CPI, all calculations must be rounded to four decimal places. Constituent Decisions This Network Price Determination is predicated on the following decisions (constituent decisions) made by the Commission. Topic Constituent Decision Reference Service classification A decision on the classification of the services to be provided by PWC Networks' during the course of the 2014 – 19 regulatory control period. Clause 2.1 of this Network Price Determination Chapter 3 of the Statement of Reasons Building determination A decision on PWC Networks' current building block proposal in which the Commission either approves or refuses to approve: Clause 2.2 of this Network Price Determination
incentive scheme or incentive scheme is to apply to the PWC Networks. Chapter 2 of the Statement of Reasons Other amounts, values and inputs A decision in which the Commission decides other appropriate amounts, values or inputs. Clause 2.10 of this Network Determination Chapter 14 of the Statement of Reasons Control mechanism for regulated network access services A decision on the form of the control mechanisms (including the X factors) for regulated network access services (to be in accordance with the relevant framework statement) and on the formulae that give effect to those control mechanisms. Clause 2.11 of this Network Price Determination Chapter 4 of the Statement of Reasons Control mechanism for alternative control services A decision on the form of the control mechanisms for alternative control services (if any) (to be in accordance with the relevant framework statement) and on the formulae that give effect to those control mechanisms. Not applicable Compliance with control mechanism A decision on how compliance with a relevant control mechanism is to be demonstrated. Clause 2.12 of this Network Price Determination Chapter 4 of the Statement of Reasons Pass throughs A decision on the pass through events that are to apply for the 2014 – 19 regulatory control period. Clause 2.13 of this Network Price Determination Chapter 13 of the Statement of Reasons Negotiating framework Not applicable to this Network Price Determination. Not applicable Negotiated Distribution Service Criteria Not applicable to this Network Price Determination. Not applicable as explained in Chapter 3 of the Statement of Reasons. Assigning customers to tariff classes A decision on the procedures for assigning retail customers to tariff classes, or reassigning retail customers from one tariff class to another (including any applicable restrictions). Clause 2.14 of this Network Determination Chapter 4 of the Statement of Reasons Dual function assets Not applicable to this Network Price Determination. Not applicable. Depreciation for establishing RAB as at A decision on whether depreciation for establishing the regulatory asset base as at the commencement of the Clause 2.15 of this Network Price Determination
where: Rt-1 is the revenue in regulatory year t-1 CPIt is the annual percentage change in CPI in regulatory year t-2 to March in regulatory year t-1 Xt is the allowed real change in revenue from regulatory year t-1 to year t of the 2014 – 19 regulatory control period as determined by the Commission Pass through is any pass through amount in regulatory year t determined by the Commission, expressed as a percentage of the annual revenue requirement Rt is the overs and unders adjustment to revenue in regulatory year t n is the number of reference tariffs m is the number of tariff components pti,j is the price of component i of tariff j in regulatory year t qti,j is the forecast volume of component i of tariff j in regulatory year t Side constraints formula where: CPIt is the annual percentage change in CPI in regulatory year t-2 to March in regulatory year t-1 Xt is the allowed real change in revenue from regulatory year t-1 to year t of the 2014 – 19 regulatory control period as determined by the Commission Yt is the side constraint on revenue recovered from a tariff class or retail customer class from regulatory year t-1 to regulatory year t of the 2014 – 19 regulatory control period as determined by the Commission Pass through is any pass through amount in regulatory year t determined by the Commission, expressed as a percentage of the annual revenue requirement m is the number of tariff components