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Regulatory Treatment Of The Darwin To Katherine Transmission Line : Issues Paper



Regulatory Treatment Of The Darwin To Katherine Transmission Line : Issues Paper


Utilities Commission


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Regulatory Treatment of the DKTL Page Utilities Commission February 2001 10 3.13 The Commission recognises that PAWAs purchase of the DKTL provides an opportunity to develop a uniform approach to the regulation of the interconnected Darwin/Katherine electricity network. The DKTL is a significant network asset that has the potential to generate considerable economic benefits from its role in developing the Territorys electricity market. 3.14 Equally, consistent with its statutory obligations, the Commission has a responsibility to ensure that network users in the Territory end up only paying a fair and reasonable amount for future use of the DKTL, with any non-networks elements of the transaction being to the account of the shareholder alone. 3.15 In conjunction with network users, PAWA and other interested parties, the Commission must address two questions: (1) what is an appropriate level of revenue for the new owner of the DKTL to receive for allowing access to the asset; and (2) how should that revenue be recovered as prices, who should pay and how should the prices relate to the prices that apply to other network assets? 3.16 Before addressing each of these issues in turn (in Chapters 5 and 6), the Commission first explores (in Chapter 4) the role that the DKTL currently plays and may play in the future in the Territorys power system, on the grounds that the particular attributes of the line will importantly determine the most appropriate regulatory approach to be taken.

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