As part of the Better Regulation reform program, the AER released its capital expenditure incentives guideline and efficiency benefit sharing scheme on 29 November 2013. The capital expenditure incentives guideline and efficiency benefit sharing scheme give electricity network businesses incentives to spend efficiently and share the benefits of efficiencies with consumers.
Amendments
Amended National Energy Objectives
On May 2024, we published our final decision on making minor changes to five AER Guidelines to reflect the addition of the emissions reduction objective to the existing National Energy Objectives (NEO). We have now made these minor changes.
Capital Expenditure Guideline Review 2025
We are undertaking a consultative process for amending the Capital Expenditure Incentive Guideline, to take into account the Australian Energy Market Commission’s final rule for managing ISP project uncertainty through targeted ex-post reviews. In addition, this review also considers additional matters that has been raised by stakeholders since our 2023 review of incentive schemes for regulated networks.
We invite interested parties to make written submissions to us on the matters discussed in this consultation paper by close of business 21 March 2025.