The Australian Energy Regulator (AER) today released three further draft guidelines as part of the Better Regulation reform program:
Accompanying these draft guidelines we have also published explanatory statements and factsheets.
Our draft expenditure forecast assessment guideline sets out our enhanced expenditure assessment approach. It is based on a nationally consistent reporting framework allowing us to compare the relative efficiencies of network businesses, and decide upon efficient expenditure allowances.
The draft expenditure incentives measures include our draft capital expenditure incentive guideline and proposed operating expenditure efficiency benefit sharing scheme. Together, these provide better incentives for network business to spend efficiently and to share the benefits of efficiencies with consumers. We designed these incentive measures alongside our expenditure forecast assessment guideline. The package reflects our strong preference for incentive-based regulation, which rewards businesses for efficient performance.
Finally, our draft confidentiality guideline sets out how electricity network businesses must make claims of confidentiality over information they submit to us as part of their regulatory proposals. Our aim is for stakeholders to have access to sufficient information on issues affecting their interests.
Today’s package builds on the other Better Regulation draft guidelines we have published on consumer engagement and shared assets. We are developing an integrated package of measures to ensure that consumers pay no more than necessary for a safe and reliable supply of electricity.
Details on how to make submissions on the draft guidelines we released today are on the expenditure assessments, expenditure incentives, and confidentiality web pages. All submissions and comments on these three draft guidelines must be made by close of business, 20 September 2013.