National Electricity (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025

When a TNSP is determining prices for a scheme regulatory year in accordance with the requirements of the NER, the TNSP must—

recover a FERM Scheme Amount from Transmission Customers;

or

return a FERM Scheme Amount to Transmission

Customers, or both.

A FERM Scheme Amount (in whole or in part) must be passed on or returned in a scheme regulatory year by adjusting, in addition to the adjustment under clause 6A.23.3(h) of the NER, the annual service revenue requirement for prescribed common transmission services by adding or subtracting the FERM Scheme Amount as relevant).

An amount—

to be recovered from Transmission Customers in respect of a FERM

Scheme Amount; or

to be returned to Transmission Customers in respect of a FERM

Scheme Amount, will be incorporated into the TNSP's prices to be charged for prescribed common transmission services for each scheme regulatory year, as published by the TNSP in accordance with clause 6A.24.2(c) of the NER for the following financial year.

If—

a TNSP receives an initial contribution notice; or

a contribution notice is varied or a new or additional contribution notice is issued under regulation 29(7), the TNSP may republish its prices for prescribed common transmission services in order to recover the FERM Scheme Amount under the relevant notice in the same scheme regulatory year, including where the prices for prescribed common transmission services have already been determined for that scheme regulatory year in accordance with the requirements of the

NER.

The TNSP must adjust the amount that would otherwise be recovered from or returned to Transmission Customers in a scheme regulatory year in respect of a FERM Scheme Amount to account for any over or under recovery of the FERM Scheme Amount in the previous scheme regulatory year.

Adjustments under subregulation (5) must be calculated by the TNSP so as to ensure that there is no systemic over or under recovery over time.

In order to comply with subregulation (6), the TNSP must, subject to any requirements in the Scheme Regulator's guidelines, ensure that the TNSP is able, as relevant, to—

recover from Transmission Customers no more or no less than the

FERM Scheme Amounts it incurs; and

return to Transmission Customers no more or no less than the FERM

Scheme Amounts it receives; and

adjust for the time cost of money based on the allowed rate of return in the relevant transmission determination of the relevant scheme regulatory year.

For the avoidance of doubt, a FERM Scheme Amount is to be treated as outside the TNSP's maximum allowed revenue under clause 6A.3 of the

NER.

Nothing in this regulation prevents a Co-ordinating Network Service

Provider from recovering a FERM Scheme Amount on behalf of a TNSP in accordance with the NER.