National guidelines - issues paper

On 7 September 2006, the AER issued its "Electricity Distribution Guidelines: Statement of Approach" which proposed a consultation process regarding the development of the AER's national guidelines for electricity distribution. This process was delayed in order to coincide with the development and release of amendments to Chapter 6 of the National Electricity Rules (NER). With the finalisation of these amendments, the AER has now released two issues papers as part of a preliminary consultation process on its national guidelines.

This process is not mandated by the NER, however, the AER is undertaking the preliminary consultation in the lead-up to commencing its new role in the national regulation of electricity distribution in 2008.

Comments received on these issues papers will inform the AER's consultation in 2008. Consultation in 2008 will include the proposed guidelines, schemes and models discussed in the first issues paper, a Service Target Performance Incentive Scheme and other guidelines and schemes relevant to Chapter 6 of the NER.

The first issues paper commences a consultation process for the development of the following:

  • a Post-tax Revenue Model;
  • a Roll Forward Model;
  • Cost Allocation Guidelines; and
  • an Efficiency Benefit Sharing Scheme.

The AER has also released a second issues paper that deals specifically with the development of a national Service Target Performance Incentive Scheme.

The two issues papers are available on the AER website.

Stakeholders are encouraged to provide submissions during this preliminary consultation and may wish to take the opportunity to canvass both threshold issues and specific issues at this stage. Interested parties are invited to make submissions to the AER by the close of business Friday 1 February 2008. These submissions will be published on the AER's website.

The AER intends to host a forum in February 2008 to discuss key issues raised in submissions and the development of the proposed guidelines, models and schemes. Information about the forum will be available on the AER's website in January 2008.

On the basis that the amended NER take effect from 1 January 2008, the AER will commence consultation under the requirements of the NER in March 2008 on those guidelines, schemes and models that the AER intends or is required to publish by mid-2008.

Submissions can be sent electronically to Alternatively, written submissions can be sent to:

Mr Chris Pattas
General Manager
Network Regulation South Branch
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3001

Issued date: 
30 November 2007
AER reference: 
AC 083/07
Darren Kearney 03 9290 1966