Regulated Revenue Determination Process
Revenue Determination Process
Every five years, ElectraNet submits a Revenue Proposal to the Australian Energy Regulator (AER) for formal assessment and approval through the revenue determination process. The proposal outlines the program of work and forecast revenue required to maintain and operate a safe, reliable and efficient transmission network.
Once approved, transmission prices are then set to recover this revenue from customers using a methodology approved by the AER.
Final determination 2018-19 to 2022-23
On 30 April 2018, the AER released its final determination on ElectraNet’s Revenue Proposal for the five-year regulatory period commencing 1 July 2018.
In its final determination, the AER accepted ElectraNet’s reduction in transmission charges, which delivers a bill reduction of $17 for a typical residential customer and a $33 decrease for a typical small business customer in 2018-19.
The AER accepted ElectraNet’s proposal to reduce capital expenditure by 39% and its operating expenditure by 9%.
The AER also accepted small amendments to the operating expenditure proposed by ElectraNet in its revised Revenue Proposal which was submitted on 22 December 2017. These changes were in response to new obligations to address system security challenges in South Australia.
We implemented a detailed early engagement program to help us understand the views and priorities of South Australia’s electricity customers. This input was reflected in our plans and Revenue Proposal for the 2019–2023 regulatory period.
More information about the final determination can be accessed on the AER’s website.
Revised Revenue Proposal 2018-19 to 2022-23
On 22 December 2017, ElectraNet submitted its revised Revenue Proposal in response to the Australian Energy Regulator’s (AER) Draft Decision.
The revised proposal explained how ElectraNet accepted and applied the Draft Decision and included a minor revision to its forecast operating expenditure to address new obligations recently imposed on the business to address the growing system security challenges in South Australia.
ElectraNet’s revised Revenue Proposal delivered price reductions for customers, while continuing to deliver safe, secure and reliable transmission services, and play a central role in South Australia’s ongoing energy transformation.
The revised Revenue Proposal continued to build on the extensive early engagement we had undertaken with our customers and stakeholders, and was shaped by their feedback and input.
The revised Revenue Proposal and supporting information sheets can be accessed below:
Revised Revenue Proposal Summary
Revenue Proposal 2018-19 to 2022-23
ElectraNet’s Revenue Proposal was submitted to the Australian Energy Regulator (AER) on 28 March 2017, outlining our expenditure plans and revenue requirements for the five-year period commencing 1 July 2018.
ElectraNet proposed significant reductions in capital and operating costs, while maintaining a safe, secure and reliable transmission service. The Revenue Proposal was built on the extensive early engagement we had undertaken with our customers and stakeholders, and shaped by their feedback and input.
On 26 October 2017, the AER released its Draft Decision, which accepted most elements of ElectraNet’s Revenue Proposal, including the full operational and capital expenditure forecasts. The Draft Decision is available at the AER’s website.
Our Revenue Proposal can be accessed from the following link: Revenue Proposal – March 2017
Our Customer Engagement Outcomes Report explains how we have incorporated findings and input from our stakeholder engagement into our Revenue Proposal. You can find out more about the responses and input received below:
- Response from Uniting Communities
- Response from Business SA
- Overview of survey responses
Preliminary Revenue Proposal 2018-19 to 2022-23
The formal Revenue Proposal built on ElectraNet’s Preliminary Revenue Proposal (PRP) released in September 2016, which presented our indicative expenditure plans. The PRP was developed to promote effective early engagement with our customers and other stakeholders, develop shared understanding and facilitate feedback to help shape our formal Revenue Proposal.
ElectraNet’s 2016 annual transmission network stakeholder forum provided an overview of the Preliminary Revenue Proposal, together with the Network Vision which outlines the directions and priorities for the transmission network, and Customer Insights Report, which outlines the feedback gathered through the first phase of our engagement program. View the presentation to see what was covered.