Endeavour Energy Operating Agreement: What You Need to Know
Endeavour Energy is a leading energy company in Australia that is responsible for distributing electricity to over 2.4 million people in New South Wales. In order to ensure reliable power supply and maintain the network, Endeavour Energy has entered into an operating agreement with the Australian Energy Regulator (AER). Here`s what you need to know about the Endeavour Energy operating agreement.
Purpose of the Operating Agreement
The Operating Agreement sets out the terms and conditions under which Endeavour Energy operates as a regulated network service provider in New South Wales. It outlines Endeavour Energy`s obligations to provide safe, reliable and efficient electricity network services to its customers while keeping the costs of those services reasonable and fair. The agreement also ensures compliance with the regulatory requirements of the AER and promotes competition in the energy market.
Key Provisions of the Operating Agreement
1. Network Performance Targets: Endeavour Energy must meet certain performance targets, including the percentage of network outages, the duration of outages, and customer interruption frequency. These targets are set by the AER in consultation with Endeavour Energy and are reviewed every five years to ensure they remain relevant and achievable.
2. Revenue and Pricing: The Operating Agreement sets out the revenue and pricing principles that govern Endeavour Energy`s charges. These principles are designed to ensure that charges are fair and reasonable, and are based on the costs of providing network services. The AER reviews and approves the revenue proposals submitted by Endeavour Energy to ensure that they comply with the pricing principles.
3. Capital Expenditure: The Operating Agreement also specifies the capital expenditure that Endeavour Energy is allowed to make. This includes the investment in new infrastructure, upgrades to existing infrastructure, and maintenance of the network. Endeavour Energy must submit an annual capital expenditure proposal to the AER for review and approval.
4. Regulatory Compliance: Endeavour Energy must comply with a range of regulatory requirements, including safety and reliability standards, consumer protection laws, and environmental regulations. The Operating Agreement sets out the processes and procedures that Endeavour Energy must follow to comply with these requirements, and the penalties for non-compliance.
The Endeavour Energy Operating Agreement is a critical component of the regulatory framework that governs the electricity market in New South Wales. It ensures that Endeavour Energy provides safe, reliable and efficient network services to its customers at fair and reasonable charges. The agreement also promotes competition and innovation in the market, which benefits consumers and the wider economy. As a regulated network service provider, Endeavour Energy must comply with the terms of the Operating Agreement, which helps to maintain standards and provide certainty for stakeholders.