This week, the ACCC handed down its final decision on revenue caps for South Australia's ElectraNet SA and Victoria's SPI Power Net and VEN Corp.

ElectraNet's earnings for 2002/03 have been capped at $148 million, increasing to $181 million in 2007/08, based on a post-tax nominal return on equity of 11 per cent and an opening asset base of $823 million.

ACCC chairman, Professor Allan Fels, said the caps will save South Australian consumers $278 million over five years.

"The ACCC determined ElectraNet is entitled to $983 million in revenue over the five year regulatory period, compared to ElectraNet's request for $1261 million," he said. "Had the ACCC allowed the revenue cap requested by ElectraNet, real prices would have increased by more than over 25% over the regulatory period."

As for Victoria, SPI PowerNet's earnings for the first full year have been capped at $271.23 million, increasing to $303.05 million in 2008, based on a post-tax nominal return on equity of 11.09 per cent and an opening asset balance of $1,835.60 million.

"The ACCC's decision will save Victorian consumers $146.66 million over five and a quarter years," said Professor Allan Fels said. "The ACCC determined that SPI PowerNet is entitled to $1503.34 million in revenue over the five year regulatory period, compared to SPI PowerNet's request for $1650.00 million."

In response to the ACCC's decisions, ElectraNet SA said it will have to review its planned investment with TransGrid in the proposed SNI electricity link between NSW and SA as well as plans to upgrade the Victoria-SA electricity interconnector that would carry an extra 150 megawatts.

"We are not saying we won't do the projects, but we will have to look very carefully at our spending on infrastructure now," said ElectraNet chief executive, Ian Stirling. "The ACCC has reduced our rate of return by just over 1% and it is not particularly attractive."