Regulated Revenue Determination Process

The AER initiates the Framework and Approach process which sets out how the applicable incentive schemes will apply to ElectraNet to encourage efficient investment and performance and how the AER will apply the Expenditure Forecast Assessment Guidelines and the depreciation methodology for the next regulatory period. The AER’s initial paper is available here.

ElectraNet advises the AER of its approach to forecasting capital and operating expenditure for the coming regulatory period. A copy of ElectraNet’s Expenditure Forecast Methodology is available here.

ElectraNet releases its Preliminary Revenue Proposal containing indicative capital and operating expenditure forecasts and providing an indicative revenue and price outlook. A copy of the Preliminary Revenue Proposal is available here.

Stakeholders are invited to provide feedback on the Preliminary Revenue Proposal.

The AER publishes a Framework and Approach paper setting out the application of the following:

• Service Target Performance Incentive Scheme (STPIS)
• Demand Management Innovation Allowance Mechanism (DMIAM)
• Expenditure Efficiency Benefit Sharing Scheme (EBSS) and Capital Expenditure Sharing Scheme (CESS)
• Expenditure forecast assessment guideline
• Whether depreciation will be based on forecast or actual expenditure in updating the regulatory asset base

ElectraNet’s Revenue Proposal outlines our forecasts of the capital and operating expenditure that will be required to meet the capital and operating expenditure objectives, to comply with the National Electricity Rules, and to fulfil our other roles and obligations.

The AER publishes and issues paper in which it identifies key issues likely to be relevant to its assessment of our Revenue Proposal.

ElectraNet’s Revenue Proposal and the AER’s Issues Paper are published for public consultation.

The AER and their Consumer Challenge Panel present their initial views to stakeholders and invite input into the process. ElectraNet is invited to give a summary of the Revenue Proposal.

The AER completes its assessment of our Revenue Proposal publishes its draft determination based on a range of inputs including its own analysis, advice from experts and input from the Consumer Challenge panel and stakeholders generally. The AER must accept our expenditure forecasts if it is satisfied that they reasonably reflect the expenditure objectives in the National Electricity Rules. It includes the revenue ElectraNet will be permitted to earn during the regulatory period.

The AER and the Consumer Challenge Panel present to stakeholders to explain the draft determination.

Public submissions are published.

ElectraNet’s revised Revenue Proposal sets out revisions made to the Revenue Proposal considering the AER’s draft determination and issues raised by stakeholders.

The AER publishes our revised Revenue Proposal for consultation.

The AER publishes its final determination setting out the maximum revenue we may recover from customers through regulated transmission charges. It also sets out the AER’s determination of the amount of capital and operating expenditure necessary to meet the capital and operating expenditure objectives in the National Electricity Rules.