The Framework and approach (F&A) is the first step in a process to determine efficient prices for electricity services. For transmission network service providers (TNSPs), the F&A provides guidance on how the AER will apply its incentive schemes. The F&A also facilitates early public consultation and assists network businesses prepare their revenue proposals.
The matters the AER may amend or replace in its F&A paper for TNSPs are listed in clause 6A.10.1A of the National Electricity Rules. Briefly, these include:
- the application of a range of incentive schemes that encourage things like service quality, improvements in network reliability or efficient capital and operative expenditure
- the application of the AER’s Expenditure Forecast Assessment Guideline
- whether depreciation of assets will be based on actual or forecast capital expenditure.
We are commencing the F&A process for TransGrid, ElectraNet and Murraylink by releasing draft F&A papers for each of the businesses.
We invite submissions from stakeholders on each of these F&A papers.
Invitation for submissions
Interested stakeholders may make submissions to the AER for consideration in making its final decision on the approach to regulation to be adopted in the F&A.
Submissions in response to the draft F&A paper close on 28 April 2016 and should be sent electronically to AERInquiry
aer [dot] gov [dot] au, or by post attention:
Mr Sebastian Roberts
General Manager
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3001
The AER prefers that all submissions be sent in an electronic format in Microsoft Word or other text readable document form and be publicly available to facilitate an informed and transparent consultative process. Submissions will be treated as public documents and posted on the AER website, except and unless prior arrangements are made with the AER to treat the submission, or portions of it, as confidential. Parties wishing to submit confidential information are requested to:
- clearly identify the information that is the subject of the confidentiality claim;
- clearly identify the detriment that will occur if the information is disclosed; and
- provide a non-confidential version of the submission.