Ausgrid - Determination 2014-19

Sector: 
Segment: 
Commencement date: 
13 December 2011
Regulatory period: 
1 July 2014 to 30 June 2019
(5 years)
Status: 
Contact: 
AER General inquiries AERInquiry@aer.gov.au
AER reference: 
52294

Overview

On 30 April 2015, we released our final decision on Ausgrid's distribution determination for the 2014-19 regulatory control period.

On 20 May 2015 the AER wrote to the NSW and ACT network businesses setting out how it proposes to correct a small number of administrative errors in its 30 April determinations. This is to ensure that the associated legal documents accurately reflect its decisions.

In May 2015, Ausgrid applied to the Australian Competition Tribunal for merits review and the Federal Court for judicial review of the AER’s final 2014-19 distribution determination. The Tribunal hearings commenced in September 2015. The tribunal made its decision on 26 February 2016.

On 24 March 2016 the AER applied to the Federal Court for judicial review of the Australian Competition Tribunal decisions to set aside the NSW and ACT electricity and gas distribution network revenue determinations.

Updates

During the regulatory control period, Ausgrid’s revenue allowance may be amended for certain events by adjusting the post-tax revenue model. These events include the annual update for the return on debt, and any cost pass through or contingent project applications. The Updates milestone identifies the events related to this distribution determination and provides links to the adjusted post-tax revenue model. The most recent update added to the AER website was published on 3 December 2015.

Background

The AER is required to determine the revenue allowance for Ausgrid under the National Electricity Rules. The AEMC deferred the full regulatory determination process for Ausgrid’s next regulatory control period (2014–19). As part of the transitional arrangements, the AER determined a placeholder revenue allowance for a transitional regulatory control period (1 July 2014 to 30 June 2015) on 16 April 2014.

Following receipt of Ausgrid’s regulatory proposal on 31 May 2014, the full determination process commenced. The AER assessed the revenue allowances for the whole regulatory control period (1 July 2014 to 30 June 2019). In the full determination, the AER trued up any difference between the placeholder revenue allowance for the transitional year and the revenue requirement for the transitional year that is established in the full determination process.

On 20 June we commenced a process seeking submissions on Ausgrid's regulatory proposal. Submissions closed on 8 August 2014.

On 15 July 2014 we also commenced a process seeking submissions on the NSW distribution businesses public lighting confidentiality claims. Later that month (29 July 2014) we published a letter outlining some of the councils' concerns. Submissions related to this process closed 29 July 2014.

On 27 November 2014, we published our draft decision on Ausgrid's regulatory proposal for the 2014-19 period.

On 20 January 2015, Ausgrid submitted its revised regulatory proposal to the AER.

Submissions on the AER's draft decision and on Ausgrid's revised regulatory proposal closed on 13 February 2015.

Consumer challenge panel

The AER established its Consumer Challenge Panel (CCP). To meet its objectives of assisting the AER make better regulatory determinations, the CCP may provide statements and advices to the AER. Statements and advices relevant to this reset are available under the ‘Challenge Panel’ milestone below. Further information on the CCP and a complete list of material provided by the CCP is available on the Consumer Challenge Panel page.