The Australian Energy Regulator (AER) today released Issues Papers on seven revenue proposals for the 2024–29 regulatory period – from Ausgrid, Essential Energy, Endeavour Energy (NSW), Evoenergy (ACT), Power and Water Corporation (NT), and TasNetworks distribution and transmission networks (Tasmania). The Issues Papers highlight key elements of each proposal, and identify the issues that are likely to be the focus of our assessment and engagement with stakeholders.
This is the first set of proposals lodged with the AER since the release of the AER's Better Resets Handbook. The Handbook aims to encourage well-justified revenue proposals that reflect the needs and preferences of consumers, and provide for a more efficient regulatory process.
The AER is encouraged to see that the businesses have started to apply the Handbook in formulating their proposals. In particular, we have seen a further step-up in the scope and quality of consumer engagement. A genuine commitment to consumer engagement is likely to lead to better quality proposals, that are in the long term interest of consumers.
Two of the businesses (Essential Energy and Endeavour Energy) were selected for the early signal pathway under the Handbook. For these businesses, the Issues Papers highlight where the businesses have met our expectations in the Handbook and what scope of review we are intending to undertake.
Both businesses have done well in meeting the expectations set out in the Handbook, and we commend them for their commitment and participation in this new process. In the case of Endeavour Energy, our initial assessment is that, subject to further review in a few areas, we are inclined to accept Endeavour’s proposal at the draft determination stage. While Essential Energy has also provided a high quality proposal, our initial assessment is that the scope of our review prior to our draft determination will need to be greater. We are keen to get stakeholder views on our initial assessments.
Invitation for submissions
Interested stakeholders are invited to make submissions on the Issues Papers and revenue proposals by Friday, 12 May 2023. Written submissions or requests to make a submission via alternative methods (e.g. through a meeting with AER staff) should be emailed to AERresets2024-29
aer [dot] gov [dot] au (AERresets2024-29[at]aer[dot]gov[dot]au).
Public forum
A public forum for interested parties will be held on 4 April 2023 for Tasmania, 5 April 2023 for Northern Territory and NSW (separately) and for the ACT on 6 April 2023. Further details are available on the AER’s website for each jurisdiction, please register your interest at:
Background
On 31 January 2023, Ausgrid, Essential Energy, Endeavour Energy (NSW), Evoenergy (ACT), Power and Water Corporation (PWC), together with TasNetworks distribution and transmission networks (TAS), submitted their revenue proposals for the 2024–29 regulatory control period to the AER.
The proposals set out the revenue each network proposes to collect from its consumers through distribution (and for TasNetworks, transmission) network charges over the 2024–29 regulatory control period.