We (the AER) use economic benchmarking to examine the relative efficiency of the distribution and transmission electricity network service providers. As part of our benchmarking toolkit, we analyse operating environment factors that may be unique to particular network service providers and which may not be captured by our econometric benchmarking model. This helps us to identify the material factors driving apparent differences in estimated operating efficiency between the distribution networks in the NEM.
As part of the continuous improvement of our economic benchmarking techniques, we are reviewing and refining our analysis of operating environment factors in consultation with industry and other interested parties.
On 11 December 2017 we published a draft report for consultation as part of our review of operating environment factors. The draft report is prepared by our consultants Sapere Research Group and Merz Consulting.
Invitation for submissions
We invite interested parties to make written submissions in response to the draft report. The consultation period closes by COB Friday 9 February 2018.
As a next step after seeking written submissions, we propose to host a workshop in February 2018 to give all stakeholders an opportunity to discuss any key issues raised in their written submissions. If you wish to attend the workshop, please express your interest by Thursday 21 December 2017.