Our final decision and explanatory statement document sets out the updates we made to our Expenditure Forecast Assessment Guidelines (Distribution and Transmission) (the EFA Guidelines) to accommodate the addition of the emissions reduction objective to the national energy objectives. We have considered stakeholder submissions in making our final decision.

The objective of the review was to determine how we should have regard to emissions reduction in assessing capital and operating expenditure forecasts. To do so, we separated our review into two parts:

1. Implementing changes to the EFA Guidelines
2. Developing an emissions reduction guidance note to provide more detailed information on the implementation considerations and expectations. 

In our final decision and explanatory statement document, we set out the next steps for further consultation and publication of our proposed emissions reduction guidance note that we consulted on in the draft decision for the EFA Guidelines. We intend to publish a draft of the emissions reduction guidance note for consultation in February 2025, and a final guidance note in April 2025. 

Our draft decision set out minor amendments to the EFA Guidelines, to give effect to the new emissions reduction component of the national energy objectives. As noted above, our draft decision raised consultation questions and invited submissions relating to the EFA Guidelines and the new emissions reduction guidance note. 

Submissions to the AER's Expenditure Forecast Assessment Guidelines (Distribution and Transmission) draft decision closed on 9 August 2024.