As required by the National Electricity Rules (NER), the Australian Energy Regulator (AER) is preparing to undertake the next distribution determinations for the New South Wales electricity distribution network service providers (DNSPs)—Ausgrid, Endeavour Energy and Essential Energy. The AER’s distribution determinations will cover the period from 1 July 2014 to 30 June 2019. The NSW DNSPs’ regulatory proposals are due by 31 May 2014.

The AER must publish a framework and approach paper in anticipation of the distribution determinations. The framework and approach paper will set out the AER’s likely approach in the distribution determination for each DNSP on such matters as:

• the classification of distribution services
• the control mechanisms to be applied
• the application of a service target performance incentive scheme
• the application of an efficiency benefit sharing scheme
• the application of a demand management incentive scheme
• the application of Part J of chapter 6A of the NER to transmission services provided by dual function assets.

In preparation for the framework and approach process, the AER undertook early consultation on matters that are relevant to the framework and approach paper. The AER will consider all submissions received to date despite recent changes to the NER.

Interested parties are encouraged to consider the key dates.

* Endeavour Energy's regulatory proposal will be published if found to be compliant with the National Electricity Rules and National Electricity Law. Further consultation will occur near this time.

Please note this timeline is subject to change.