Classification Description Regulatory treatment Direct control service Standard control service Services that are central to electricity supply and therefore relied on by most (if not all) customers such as building and maintaining the shared distribution network. We regulate these services by determining prices or an overall cap on the amount of revenue that may be earned for all standard control services. The costs associated with these services are shared by all customers via their regular electricity bill. Alternative control service Customer specific or customer requested services. These services may also have potential for provision on a competitive basis rather than by the local distributor. We set service specific prices to enable the distributor to recover the full cost of each service from customers that service. Negotiated service Services we consider require a less prescriptive regulatory approach because all relevant Distributors and customers are able to negotiate prices according to a framework
Appendix C – Summary of submissions Table C.1 Summary of submissions on the preliminary position F&A Stakeholder Summary AER response Classification of services Origin Strongly supported the AER continuing to classify metering services for type 6 meters as alternative control services. Supported the provision of metering services broken down into a meter installation service and meter provision service, in the interests of transparent pricing. Supported type 5 meters reclassified from negotiated to alternative control. Highlights that the SA Government’s proposed policy that type 5 meters be installed as new and replacement meters and that this meter can only be provided by distributors. We consider it is appropriate to reclassify type 5 meter services from negotiated to alternative control. See section 1.3.3. SACOSS Seek assurance from us that nothing in the F&A will add to or reinforce any barriers to achieving its policy proposals to expand monthly reading to vulnerable consumers. The treatment of metering in the F&A must contain sufficient flexibility in order to, at the least, not add to or reinforce any barriers to an efficient workable solution (introduction of smart(er) meters in SA). Stated that type 6 import and export meters is a prima-facie challenge to the idea of ‘negotiated services’ where there is no contestability. Non-standard Type 6 import and export meters to be reclassified as alternative control service. See section 1.3.3. Vector Supported our preliminary position to classify type 6 and 5 meters in South Australia (and Qld) as alternative control services. See section 1.3.3. Citelum Australia Suggested that type 7 unmetered connection points be made contestable or shifted from standard control to alternative control. Supported our continued classification of public lighting services as a Negotiated Distribution Service. Type 7 unmetered services will remain classified as standard control. See section 1.3.3. LGA Supported our continued classification of public lighting services as a Negotiated Distribution Service. Public lighting services will continue to be classified as negotiated services. See section 1.3.4. DPTI Supported our continued classification of public lighting services as a Negotiated Distribution Service. Stated that the definition of ‘asset relocation services’ is unclear. Suggested alternative wording to ensure that SA Power Networks is We consider that the current definition of 'asset relocations' would benefit from additional clarity to ensure that the negotiated services framework applies to all asset