The Australian Energy Regulator (AER) has today released a position paper initiating the second stage of its review into the annual pricing process.
The paper outlines our positions to further develop the annual pricing process, including:
- Content of pricing proposal models and documents
- Revisions to our standardised pricing models
- Pricing proposals and approvals in the first year of a regulatory control period
- Application of the side constraint mechanism
Stakeholders will have the opportunity to provide feedback on these positions through written submissions as well as stakeholder workshops to be held after close of submissions.
The AER will communicate a position on the application of the side constraint mechanism in October 2022. The AER’s final position on the second stage review will be published in December 2022.
Background
The development of these aspects for the annual pricing process follows the AER’s commitment in the AER Strategic Plan 2020–25 to design systems to work in ways that deliver efficient regulation of monopoly infrastructure.
Last year the AER completed stage one of the review. This included developing a better process for our assessment of pricing proposals, including a formal pre-lodgement engagement process and standardised pricing models.
Invitation for submissions
We welcome submissions on the positions put forward by 5 pm AEST, Friday 2 September 2022.
Written submissions can be sent via email to AERPricing
aer [dot] gov [dot] au (AERPricing[at]aer[dot]gov[dot]au) or by mail to:
Mr Warwick Anderson
General Manager
Australian Energy Regulator
GPO Box 3131
Canberra, ACT, 2601
We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. We will treat written submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.
We request parties wishing to submit confidential information:
- clearly identify the information that is the subject of the confidentiality claim
- provide a non-confidential version of the submission in a form suitable for publication.