basis rather than only by the local distributor. efficient cost of each service from customers using that service. Negotiated service Services we consider require a less prescriptive regulatory approach because all relevant parties have sufficient countervailing market power to negotiate the provision of those services. Distributors and customers are able to negotiate service and price according to a framework established by the NER. We are available to arbitrate if necessary. Unclassified distribution services Distribution services that are contestable will not be classified. We have no role in regulating these services. Non-distribution services Services that are not distribution services. We have no role in regulating services. Source: AER Our proposed position is to change the classification of some of TasNetworks' distribution services for the 2019−24 regulatory control period. Specifically, we proposed to reclassify new/emerging public lighting technology from negotiated to alternative control. Otherwise we have clarified service descriptions to better align with the services being provided, create consistency and predictability across jurisdictions as far as practicable in how new distribution services might be classified. Our proposed service classification for TasNetworks’ distribution services is set out in figure 1 below. Figure 1 AER proposed classification of TAS distribution services Source: AER Our final F&A decision on service classification is not binding for our determination on TasNetworks' regulatory proposal. However, under the NER we may only change our classification approach if unforeseen circumstances arise, justifying a departure from our final F&A position. Control mechanisms Following on from service classifications, our determinations impose controls on direct control service prices and/or their revenues. We may only accept or approve control mechanisms in a network’s regulatory proposal if they are consistent with our final F&A. In deciding control mechanism forms, we must select one or more from those listed in the NER. These include price schedules, caps on the prices of individual services, weighted average price caps, revenue caps, average revenue caps and hybrid control mechanisms. Our decision on the form of control mechanisms for TasNetworks’ distribution business is: standard control services – revenue cap alternative control services – caps on the prices of individual services.
Dual function assets Dual-function assets are high voltage transmission assets forming part of the distribution network. Transmission network service providers usually operate these assets. Considering transmission assets as part of a distribution determination avoids the need for a separate transmission proposal. Where a network service provider owns, controls or operates assets, we are required to consider whether we should price these assets according to the transmission or distribution pricing principles. TasNetworks does not currently own, control or operate any dual-function assets, nor did it own, control or operate any dual function assets at the time of the last determination. Therefore, we are not required to, and will not; make any decision under the NER regarding dual-function assets.
Negotiated (new public lighting technology) Unregulated distribution services Distribution asset rental Rental of distribution assets to third parties (e.g. office space rental, pole and duct rental for hanging telecommunication wires etc.). N/A Unclassified distribution service Contestable metering support roles Includes metering coordinator (except where the distributor is the initial metering coordinator), metering data provider and metering provider for meters installed or replaced after 1 December 2017. N/A Unclassified distribution service Provision of training to third parties for non-network related issues Training programs provided to for non-network related issues N/A Unclassified distribution service Non-distribution services – Although this table relates to distribution services, we have included the below non-distribution services for clarity. Operation and maintenance of isolated distribution networks not part of the NEM The operation and maintenance of third party owned distribution networks not physically connector to the distributor’s distribution network. E.g. TasNetworks and Hydro Tas. N/A Non-distribution service