On 17 December 2016, the AEMC initiated a rule change review from the NSW and ACT electricity distributors who seek participant derogations to amend the National Electricity Rules.
The rule change requests seek to provide a mechanism to minimise pricing volatility for NSW and ACT customers that may occur at the conclusion of the merits review and judicial review proceedings and the finalisation of final distribution determinations and other processes for the NSW and ACT distributors.
Consultation paper
On 20 December 2016, we provided a submission in response to the AEMC consultation paper. Our submission supports the objective of smoothing the NSW and ACT distributors' revenue into the next regulatory control period to avoid a potential bill shock to customers towards the end of this regulatory control period that might result from the ongoing appeals. However, we have concerns with the particular process and mechanism proposed by the distributors to achieve this objective. We seek to work with the AEMC, NSW and ACT distributors and consumer representatives to find a better solution to achieve this objective.
AER Cover letter - AEMC revenue smoothing rule change (consultation paper) - 20 December 2016
AER Submission - AEMC revenue smoothing rule change (consultation paper) - December 2016