Guidelines for networks

The AER develops guidelines for network providers in response to new rules, or changes to rules, announced by the Australian Energy Market Commission (AEMC).

Our guidelines provide instructions to market participants on how we expect them to comply with the rules.

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Incentive schemes 

Incentive schemes form an important part of our approach to regulating national monopoly electricity and gas networks in Australia.

They seek to incentivise regulated network service providers to run an efficient business so that consumers pay no more than necessary for services that they value the most.

The National Electricity Rules establishes the following incentive schemes:

  • Efficiency benefit sharing scheme (EBSS)
  • Capital expenditure sharing scheme (CESS)
  • Service target performance incentive scheme (STPIS)
  • Demand management incentive scheme (and demand management innovation allowance)
  • Small scale incentive scheme.

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Models

We have developed a series of financial models to be used by network businesses in gas and electricity revenue determinations.

Using standardised models streamlines our assessment processes and improve the efficiency, accuracy and transparency of our determinations.

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Reviews

We periodically review and update our guidelines, schemes and models to ensure they are fit-for-purpose in the current regulatory environment. We also review other regulatory functions and publish issues papers to address challenges, consider new ideas and discover potential ways forward. 

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Rate of Return Instrument 2026

The Rate of Return Instrument specifies how the AER will determine the allowed rate of return on capital invested in regulated electricity and gas networks.
Type
Guidelines
Sector
Electricity
Gas
Status
Open

Service target performance incentive scheme V6

The STPIS is to provide incentives to TNSPs to improve or maintain a high level of service for the benefit of participants in the NEM.
Type
Schemes
Sector
Electricity
Status
Current

South Australia Small Compensation Claims Scheme - Jurisdictional scheme application

Jurisdictional scheme for the SA Small Compensation Claims Scheme.
Type
Schemes
Sector
Electricity
Status
Current

Compliance procedures and guidelines - 2024 update

We are reviewing our compliance procedures and guidelines. Submissions on the draft Guidelines are invited from interested stakeholders by 19 April 2024.
Type
Guidelines
Sector
Electricity
Gas
Status
Open

Electricity transmission post-tax revenue model - March 2025 amendment

The AER has released proposed amendments to its electricity transmission post-tax revenue model.
Type
Models
Sector
Electricity
Status
Current

Day ahead auction record keeping guideline 2023

How transportation facility operators should record and maintain nomination and renomination data relevant to the AER’s monitoring functions.
Type
Guidelines
Sector
Gas
Status
Current