This proposed amendment is required because the current published 2022 Instrument cannot be applied to the Victorian electricity and gas distribution businesses. The issue specifically relates to continuing the trailing average cost of debt method modifications. These modifications were made so that it works with the 6-month extension period following the change to financial year regulatory periods.
The consultation paper outlines why the 2022 Instrument as currently drafted cannot be applied to the affected Victorian businesses, and the legal powers available to amend the Instrument.
In considering the amendment process under the revisiting clause, we note that the amendments are necessary to allow the 2022 RORI to apply to all network service providers (NSPs). The amendments we are proposing were discussed with stakeholders when we made the amendments to the 2018 RORI. The proposed amendments will only vary how the 2022 RORI applies to NSPs in the position of the Victorian NSPs which are transitioning from a calendar year to financial year regulatory years. Hence, as with the amendment we made in August 2023, we do not consider a comprehensive process is necessary but acknowledge the importance of having a targeted consultation.