The Australian Energy Regulator (AER) today published a formal pre-lodgement process and standardised pricing models for use in the upcoming 2022–23 annual pricing process.
The outcome of this review will streamline assessment processes and improve the efficiency, accuracy, and transparency of pricing proposals from electricity Distribution Network Service Providers (DNSPs).
The AER anticipates it will result in the ability to approve pricing proposals faster, to ensure approved network prices are finalised in time to be included in Default Market Offers (DMO) as well as provide sufficient time for retailers to develop and communicate prices.
The pre-lodgement process and standardised pricing models are accompanied by a Final Position paper, as well as a handbook to assist with using the model.
This completes the first stage of a review into improving the annual pricing process for electricity DNSPs. The next stage of this process will explore the transparency and accessibility of the pricing proposal and relevant outcomes and will be undertaken in the second half of 2022.
The development of these aspects for the annual pricing approval process follows the AER’s commitment in the AER Strategic Plan 2020–2025 to design systems to work in ways that deliver efficient regulation of monopoly infrastructure.