The AER has published new versions of the post-tax revenue models (PTRMs) that apply to future electricity distribution and transmission determinations. The new versions give effect to the changes set out in AER’s final report on the review of the regulatory tax approach. The main changes are that the new PTRMs allow for the recognition of immediate expensing of certain capex for tax purposes and applies the diminishing value method for tax depreciation to new depreciable assets.
The PTRMs now also provide the option to select and input 'tracked' depreciation of the opening asset bases (regulatory and tax) and other minor presentational changes.
The National Electricity Rules (NER) require that the AER develop and publish certain guidelines, models and schemes that will be applied to distribution and transmission networks service providers. On 24 April 2019, in accordance with clauses 6.4.1(b) and 6A.5.2(b) of the NER, the AER published:
- An amended distribution PTRM (version 4) and associated handbook.
- An amended transmission PTRM (version 4) and associated handbook.
- A final decision document and associated log of detailed changes to the PTRMs.