Guidelines for networks
The AER develops guidelines for network providers in response to new rules, or changes to rules, announced by the Australian Energy Market Commission (AEMC).
Our guidelines provide instructions to market participants on how we expect them to comply with the rules.
Incentive schemes form an important part of our approach to regulating national monopoly electricity and gas networks in Australia.
They seek to incentivise regulated network service providers to run an efficient business so that consumers pay no more than necessary for services that they value the most.
The National Electricity Rules establishes the following incentive schemes:
- Efficiency benefit sharing scheme (EBSS)
- Capital expenditure sharing scheme (CESS)
- Service target performance incentive scheme (STPIS)
- Demand management incentive scheme (and demand management innovation allowance)
- Small scale incentive scheme.
We have developed a series of financial models to be used by network businesses in gas and electricity revenue determinations.
Using standardised models streamlines our assessment processes and improve the efficiency, accuracy and transparency of our determinations.
We periodically review and update our guidelines, schemes and models to ensure they are fit-for-purpose in the current regulatory environment. We also review other regulatory functions and publish issues papers to address challenges, consider new ideas and discover potential ways forward.