On 26 May 2016, we released our final decision on Powercor’s distribution determination for the 2016-20 regulatory control period.
Update
On 15 December 2017 the AER wrote to Powercor setting out how it proposed to correct a mathematical error in the inflation calculation in its 26 May 2016 decision.
Subject to considering submissions on our proposed correction, the AER is proposing to revoke the 26 May 2016 determination and substitute it with a new determination to correct the identified error under clause 6.13 of the NER by no later than 1 March 2018.
Background
The AER is required under the National Electricity Rules (NER) to determine the revenue allowances for the Victorian electricity distribution network service providers (DNSPs) AusNet Services, CitiPower, Jemena, Powercor and United Energy in relation to their respective electricity distribution services. In April 2015, the Victorian DNSPs submitted their regulatory proposals and supporting information to the AER. The proposals cover the regulatory control period 1 January 2016 to 31 December 2020 and include information on the DNSPs’ proposed capital and operating expenditures for that period.
On 29 October 2015, we released our preliminary decision on Powercor’s distribution determination for the 2016-20 regulatory control period.
On 6 January 2016, the Victorian electricity distributors submitted their revised regulatory proposals for the 2016-20 period. Also, interested stakeholders provided their submissions on the AER preliminary decision and the revised proposals.
Following further stakeholder consultation, we must revoke our preliminary decision and substitute it with a final decision to be published by the end of April 2016. If our final decision differs from our preliminary decision, any necessary adjustment will be spread across revenues over the remaining years of the regulatory control period. We decided to change the release date of our final decision to the end of May 2016.
Consumer challenge panel
The AER established its Consumer Challenge Panel (CCP) to meet its objectives of assisting the AER make better regulatory determinations. Statements and advices relevant to this reset are available under the ‘Challenge Panel’ milestone. Further information on the CCP and a complete list of material provided by the CCP is available on the Consumer Challenge Panel page.