AER releases consultation paper on incentivising and measuring export service performance

The AER has begun a consultation process on its approach to incentivising and measuring export service performance.

This forms part of our reforms to strengthen customer protections and our regulatory oversight of export services provided by distribution networks. These reforms follow the Australian Energy Market Commission’s (AEMC) recent rule change relating to access, pricing and incentive arrangements for distributed energy resources.

This paper seeks stakeholder feedback on three inter-related workstreams:

  • A review into whether incentive arrangements for export services are fit for purpose, including whether there is merit in updating the service target performance incentive scheme to cover exports
  • A process to identify and develop export service performance metrics to include in the AER’s first export service performance report (formally called the ‘DER network service provider performance report).
  • A consultation on the extent to which the current productivity benchmarking techniques used in the AER’s annual benchmarking report capture export services and options for addressing any limitations in terms of measuring productivity. The AER uses the productivity measures in the annual benchmarking report to understand distribution network productivity and assess efficiency as part of revenue determinations.

On Monday, 22 August 2022 the AER will host a stakeholder workshop which provides an opportunity for stakeholders to raise questions and provide feedback in relation to this consultation paper. Consultation on this paper is open until Friday, 2 September 2022. Stakeholders can send submissions by emailing to AERInquiry@aer.gov.au.[/no-lexiocon]

Sector: 
Segment: 
Issued date: 
2 August 2022
AER reference: 
AC 122/22
Contact: 
AER General Inquiries AERInquiry@aer.gov.au