AER invites submissions on Victorian f-factor draft determinations and explanatory statement

The Australian Energy Regulator (AER) has released its draft determinations on the Victorian f-factor and explanatory statement for the 2016-20 period.

The f-factor scheme is an existing regulatory instrument, which encourages distributors to improve their operations so they reduce the type of instances that could lead to starting bushfires. The scheme does this by rewarding distribution businesses to reduce these risks, particularly in bushfire prone areas. The original scheme was introduced by the Victorian Government in 2011.

On 22 December 2016, the Victorian Government published the ‘f-factor scheme order 2016’ which revoked the original scheme and provided for the establishment of a new one. Under this new scheme the AER have a range of new responsibilities, including determining the ‘reward and penalty’ amounts for ‘fire starts’ in the distribution businesses’ annual pricing approval process.

Further details of the new f-factor scheme are explained in ourdraft determinations and explanatory statement.

Invitation for submissions

We are now seeking written submissions from interested stakeholders on our draft decisions regarding our proposed approach on how to adjust the distributors' annual revenue taking info account our new responsibilities and the new scheme. Submissions close, COB Friday 26 May 2017.

Submissions should be emailed to

Alternatively, submissions can be sent to:

Mr Chris Pattas
General Manager
Australian Energy Regulator
GPO Box 520
Melbourne Vic 3001

The AER prefers that all submissions be sent in an electronic format (Microsoft Word) and are publicly available, to facilitate an informed, transparent and robust consultation process. Accordingly, submissions will be treated as public documents and posted on the AER's website, unless prior arrangements are made with the AER to treat the submission, or portions of it, as confidential. Those wishing to submit confidential information are requested to:

  • clearly identify the information that is the subject of the confidentiality claim; and
  • provide a non-confidential version of the submission
Issued date: 
3 April 2017
AER reference: 
AC 34/17
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