Model arrangements for electricity distribution services
The contract between a retailer and a network company covering the terms and conditions for transporting electricity from the grid to end-use customer premises is known as a Use of System Agreement (UoSA).
Promoting a model UoSA has been considered as a possible means to lower transaction costs and reduce possible barriers to retail competition by reducing the number and diversity of such agreements in effect in the marketplace.
The Commission has been progressing the development of model agreements, and a significant body of work has been undertaken to date by the Commission and by other industry groups in previous forums.
The Model UoSA is a set of model distribution arrangements that were initially developed under the Metering and Reconciliation Information Agreement (MARIA) by the Model Distribution Arrangements Project (MDAP) in 2002. The Model UoSA is between the retailer and the distributor, and covers commitments, payment obligations, operational requirements, and the rights of each party.
There are two forms:
- Model UoSA Interposed is a document that sets out a complete set of standardised contractual arrangements between the retailer and the distributor on the presumption that the primary relationship with the consumer is through the retailer.
- Model UoSA Conveyance is also a document that sets out a complete set of standardised arrangements between the retailer and the distributor. It, however, presumes that two relationships are held with the consumer: one contract between the consumer and the distributor for distribution services (also known as line function services), and another contract between the consumer and the retailer for retail services.
The latest draft of the MUoSA Interposed was published for consultation in April 2008.
In line with the findings of the Ministerial Review into the electricity industry, the Commission is currently undertaking some work relating to the need for increased standardisation of distribution line tariff structures and use of system rules.
