The AER has decided to replace the current framework and approach (F&A) papers that apply to AusNet Services, CitiPower, Powercor, Jemena Electricity Networks, and United Energy for the 2021–25 regulatory control period. We expect to release preliminary replacement F&As in August 2018 and will commence consultation at that stage.
The F&A provides direction to a service provider on how certain aspects of its regulatory proposal should be framed. Stakeholder input on the F&A is important as the decisions made at this early stage will inform the businesses’ upcoming revenue determinations and influence the regulatory arrangements applying to the businesses well into the next decade.
The F&A deals with service classification (which 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.
We are keen to encourage stakeholder input on distribution service classification. We recommend interested parties subscribe to our website to receive email alerts about updates to the 2021-2025 Victorian determination processes.