On 16 August 2017, the AER met with key stakeholders to discuss the process for remaking the operating expenditure (opex) decisions for the NSW and ACT electricity distribution businesses.

The purpose of this meeting was to discuss options for how the AER can work cooperatively with stakeholders in remaking the opex decisions. In particular, we sought views on:

• the key issues for the opex remittal process, including key objectives and areas of concern
• the best means by which the AER can facilitate a robust, transparent and consultative process for considering these issues in remaking the decisions.

A summary of key outcomes from the meeting is available below.

In response to a written request from Essential Energy, we agreed to extend the due date for Essential Energy’s 2019-24 regulatory proposal to 30 April 2018. Based on the approach taken by Essential Energy toward progressing its 2014‑19 remittal and in developing its 2019‑24 proposal, we consider that our assessment of its 2019‑24 proposal can be completed within the revised timeframe, consistent with our usual consultative and robust processes. The exchanged letters are published below.

On 21 December 2017, the AER released its position paper and invited submissions from interested parties on issues related to the remaking of our debt decision for the NSW and ACT electricity distributors (Ausgrid, Endeavour Energy, Essential Energy and ActewAGL) for the 2014-19 regulatory control period, and Jemena Gas Networks for the 2015-20 access arrangement period.

On 18 January 2018, the Full Federal Court handed down SA Power Networks v Australian Competition Tribunal (No 2) [2018] FCAFC 3. This was a review application from Application by SA Power Networks [2016] AComptT 11.

In our debt Position Paper, we indicated we would consider the decision of the Full Court for SA Power Networks when it was handed down. We consider this Full Court decision handed down on 18 January supports our proposed approach to apply a revenue neutral debt transition in the remitted debt decisions. Our revenue neutral debt transition approach was developed following the Tribunal decisions that gave rise to the current remittals. It was recently upheld in relation to Victorian electricity distributors and ActewAGL gas (as discussed in the debt Position Paper). We invite interested stakeholders to review the decision of the Full Court and comment on it, or comment on our view it supports our proposed remitted debt approach to apply a revenue neutral debt transition, in their submissions to our debt Position Paper.

We extended the deadline for submissions on our debt Position Paper on the remitted debt decisions from 10 February to 24 February 2018 to ensure that interested parties have sufficient time to fully consider and comment on the Full Federal Court decision, SA Power Networks v Australian Competition Tribunal (No 2) [2018] FCAFC 3, in any submissions.

Submissions on our debt Position Paper closed on 24 February 2018.