The Australian Energy Regulator has rejected SP AusNet’s
(ASX:SPN) proposal to lift transmission charges.
As a result of the decision, the AER estimates average transmission charges in Victoria will be reduced by about 5 per cent per year over the three year period.
Instead of allowing prices to rise, the AER has pushed SP AusNet to focus on efficient spending and to ensure that is returned to customers with lower prices.
The final decision caps SP AusNet’s total revenue at $1.6 billion.
AER says the cap has been applied to ensure SP AusNet recovers no more than its efficient costs.
SP AusNet delivered a net profit of $97.7 million in the first half of fiscal 2014.
