As required by the National Electricity Rules (NER), AER is preparing to undertake the next transmission determination for the Victorian electricity transmission network service provider (TNSP) — AusNet Services. The AER’s transmission determination will cover the next regulatory control period (1 April 2017 to 31 March 2022). AusNet Service's regulatory proposal is due by 31 October 2015.

The AER must publish a framework and approach paper in anticipation of the transmission determinations. The framework and approach paper will set out the AER’s likely approach in the transmission determination for AusNet Services on such matters as:

• service target performance incentive scheme
• efficiency benefit sharing scheme
• capital expenditure sharing scheme
• expenditure forecast assessment guidelines, and
• whether depreciation will be based on forecast or actual capital expenditure.

Interested parties are encouraged to consider the key dates.

Source: NER, Chapter 6A
Notes:* The NER does not provide specific timeframes in relation to publishing draft decisions. Accordingly, this date is indicative only.

On 3 February 2015, the AER issued its Framework and approach (F&A) preliminary positions paper for AusNet Services for consultation. The F&A outlines our proposed approach to the application of schemes and guidelines that will apply to AusNet Services’ prescribed transmission services. The F&A applies to the next regulatory control period (1 April 2017 to 31 March 2022).

AusNet Services raised two issues for consideration in conjunction with the F&A process:

• Length of the regulatory control period (AusNet proposes that the period should be longer than 5 years); and
• Application of the ex post review of capital expenditure to the current regulatory control period (AusNet propose this review be deferred).

In addition to submissions on the AER's preliminary positions we invited submissions from stakeholders on these additional matters.

Submissions in response to the F&A preliminary positions closed 27 February 2015.

On 31 March 2015 the AER published its final decision on the Framework and Approach to apply to AusNet Services for the 2017-2022 regulatory control period.