The Australian Energy Regulator has published its first annual benchmarking reports for electricity distribution and transmission networks.
The benchmarking reports compare the relative efficiency of network businesses, taking intoaccount different operating conditions facing the networks. The benchmarking reports contribute to the AER’s role in regulating the tariffs levied by network businesses.
“The benchmarking reports mark an important milestone for the AER as the reports provide more transparency about the performance of network businesses than ever,” AER Chair Paula Conboy said.
“Our benchmarking reports reflect a range of performance across the businesses but generally they show the Victorian and South Australian businesses are the best performers. Comparatively, the NSW, ACT, Queensland, and Tasmanian businesses do not perform as well.”
The benchmarking reports are the product of a rigorous two year development and consultation process. The AER first established benchmarking models and data requirements. Data was then collected, tested, and validated across all network businesses.
The process involved extensive consultation with network businesses and other interested stakeholders, including through hosting public forums and open workshops to discuss proposed benchmarking models and data requirements.
The overall benchmarking measures are part of the suite of tools the AER uses to assess the efficiency and performance of network businesses and form part of the ongoing process of refining the regulatory approach.
“The reports will serve as a valuable tool for stakeholders that wish to participate in the regulatory processes,” Ms Conboy said.
The AER has drawn on benchmarking findings for the draft decisions for the ACT, NSW and Tasmanian network service providers announced. The final decisions on the revenue proposals for these businesses sets the amounts (and therefore network charges) that can be recovered from customers through energy bills.