The AER wishes to inform stakeholders that it will delay the release of its “Stage Two” discussion paper on its regulatory guidelines for electricity distribution in order to take into account recent and likely policy developments.
On 7 September this year, the AER issued a document entitled “Electricity Distribution Guidelines: Statement of Approach” which proposed the release of a “Stage Two” discussion paper in the fourth quarter of 2006 regarding revenue and asset modelling, cost reporting and cost allocation. The Statement of Approach and related documents are available on the AER’s website.The AER has been mindful of the findings of the AEMC in its recent determination for transmission revenue regulation and the implications this might have with respect to electricity distribution. The AER is also aware of significant work being undertaken by the MCE regarding the development of rules for electricity distribution regulation, and expectations that the associated exposure draft of the National Electricity Rules will be released in 2007.
As these developments have implications for the AER’s future role in distribution regulation, the AER has decided to postpone the release of its “Stage two” guideline discussion paper . The AER expects it will release its discussion paper in early 2007.