The Australian Energy Regulator (AER) today released three further guidelines as part of its Better Regulation reform program:
Accompanying these guidelines we have also published explanatory statements and factsheets.
Our expenditure forecast assessment guideline describes the process, techniques and associated data requirements for our approach to setting efficient expenditure allowances for network businesses. Our approach to assessing efficient expenditure is closely linked to our expenditure incentive measures.
Our expenditure incentives measures include our capital expenditure incentives guideline and efficiency benefit sharing scheme. These give electricity network businesses incentives to spend efficiently and share the benefits of efficiencies with consumers. Our incentive schemes are integrated with our approach to forecasting to promote efficient spending.
Finally, our shared asset guideline outlines how consumers will benefit from the other services electricity network businesses may provide using the assets consumers pay for.
Today’s package builds on the other Better Regulation guidelines we have published on consumer engagement and confidentiality. Our integrated package of reforms mean consumers will pay no more than necessary for a safe and reliable supply of electricity.