The AER has published a new version of the post-tax revenue model (PTRM) that applies to future electricity transmission determinations. The main change is that the new PTRM accommodates changes to depreciation schedules as a result of the AER’s financeability guideline, which was developed in response to the Australian Energy Market Commission’s Accommodating financeability in the regulatory framework rule change.
The amendments to the PTRM ensure the correct tax treatment of assets where regulatory depreciation is adjusted to address a demonstrated financeability issue.
Background
The National Electricity Rules (NER) require the AER to develop and publish certain guidelines, models and schemes that will be applied to transmission network service providers. On 3 March 2025, in accordance with clause 6A.5.2(b) of the NER, the AER published:
- An amended transmission PTRM (version 6) and associated handbook.
- A final decision document and associated log of detailed changes to the PTRM.