The AER has decided to replace the current framework and approach (F&A) papers that apply to Ausgrid, Endeavour Energy, Essential Energy, ActewAGL and TasNetworks for the 2019–24 regulatory control period.
The F&A provides direction to a service provider on how certain aspects of its regulatory proposal should be framed. We have decided there are sufficient reasons to reconsider the F&As that will apply to these businesses over the next five year regulatory control period. As a result, we will commence consultation on these F&A papers in early 2017.
The F&A deals with service classification (what services we will regulate), form of control (how we will set prices for regulated services) and incentive schemes that aim to encourage cost efficiency and maintenance of service standards, amongst other things.
Stakeholder input on distribution service classification at the F&A stage is important as many of the decisions made at this early stage will influence the regulatory arrangements applying to the businesses well into the next decade.