AER - Draft determinations and Explanatory statement - Electricity f-factor scheme 2016-2020 for Victorian electricity distribution network service providers April 2017

The AER has made its draft determinations for the Victorian electricity distributors, Ausnet Services, CitiPower, Jemena, Powercor and United Energy. These include:

• the revenue adjustment formula for the 2019 regulatory year, and for each subsequent regulatory year
• the revenue adjustment formula and the fire start target numbers for the 2018 regulatory year (transitional adjustment)

Further, the revenue adjustment will be made by way of an "I-factor" component in the annual revenue requirement calculation formula.

This determination replaces our previous determination on f-factor application, as indicated in the AER, Final decision for Victorian distribution determination 2016 to 2020, Attachment 18 – f-factor scheme, May 2016.

The AER seeks stakeholders’ comments and submissions to the draft determinations regarding our proposed approach on how to adjust the distributors' annual revenue requirements to give effect to the reward and penalty amounts under the f-factor scheme.

After submissions on this paper have been received and considered, the AER will issue the final f-factor scheme determinations and explanatory statement by 30 June 2017.