Overview

Indicative timetable

As required by the National Electricity Rules (NER), AER is preparing to undertake the next transmission determination for the Queensland electricity transmission network service provider (TNSP) — Powerlink. The AER’s transmission determination will cover the next regulatory control period (1 July 2017 to 30 June 2022). Powerlink's regulatory proposal is due by 31 January 2016.

The AER must publish a framework and approach paper in anticipation of the transmission determinations. The framework and approach paper will set out the AER’s likely approach in the transmission determination for Powerlink on such matters as:

  • service target performance incentive scheme
  • efficiency benefit sharing scheme
  • capital expenditure sharing scheme
  • expenditure forecast assessment guidelines, and
  • whether depreciation will be based on forecast or actual capital expenditure.

Interested parties are encouraged to consider the key dates.

Indicative dates for key milestones in the decision making process
Milestone Date
Framework and approach published 31 July 2015
Powerlink submits regulatory proposal 31 January 2016
Submissions on revenue proposal close May 2016*
AER to publish draft transmission determination 30 September 2016*
AER to publish final transmission determination 30 April 2017

Source: NER,Chapter 6A
* The NER does not provide specific timeframes in relation to publishing draft decisions. Accordingly, this date is indicative only.

Preliminary position - Framework and approach preliminary positions paper

On 5 March 2015, the AER issued its Framework and approach (F&A) preliminary positions paper for Powerlink for consultation. The F&A outlines our proposed approach to the application of schemes and guidelines that will apply to Powerlink's prescribed transmission services. The F&A applies to the next regulatory control period (1 July 2017 to 30 June 2022).

Submissions - on preliminary positions

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Powerlink proposed to the AER that it be permitted to apply a 'top-down' approach to expenditure forecasting for its capital projects later in the next regulatory control period, supported by a sample of projects also forecast using the conventional 'bottom-up' build approach to forecasting. The AER was asked to consider whether this proposal should be allowed.

In addition to submissions on the AER's preliminary positions we invited submissions from stakeholders on this proposal.

Submissions in response to the F&A preliminary positions closed 3 April 2015.

Framework and approach

On 22 June 2015 the AER published its final decision on the AER Final Framework and Approach for Powerlink for the regulatory control period commencing 2017.

Expenditure forecasting methodology