The AER has released its proposed amendments to the gas transmission and distribution post-tax revenue models (PTRMs) under the National Gas Rules. The proposed amendments give effect to the changes set out in the AER’s final position paper on the treatment of inflation in its regulatory framework. The amendments allow for:
- a shortened period over which we calculate our estimate of expected inflation from ten years to match the regulatory period
- an adjustment mechanism to recognise that in future it may take longer than previously for inflation to settle back into the Reserve Bank’s target band.
The explanatory statement explains the proposed amendments, and the reasons for our proposed approach. These proposed amendments are implemented in the amended PTRMs and revised PTRM handbooks.
Invitation for submissions
We invite stakeholders to make written submissions on our proposed amendments by 3 February 2021. Submissions should be emailed to ModelReviews@aer.gov.au.
Alternatively, written submissions can also be sent to:
Mr Warwick Anderson
General Manager, Networks Finance and Reporting
Australian Energy Regulator
GPO Box 3131
Canberra ACT 2601
We prefer all submissions be publicly available to facilitate an informed, transparent and robust consultation process. Accordingly, submissions will be treated as public documents unless prior arrangements are made with the AER to treat the submission, or portions of it, as confidential. We request parties wishing to submit confidential information to:
- clearly identify the information that is the subject of the confidentiality claim; and
- provide a non-confidential version of the submission.
We will place all non-confidential submissions on our website. For further information on our use and disclosure of information provided to us, see the ACCC/AER Information Policy.