Overview

Type
Sector
Electricity
Gas
Segment
Distribution
Retail
Transmission
Region
Australian Capital Territory
New South Wales
Northern Territory
Queensland
South Australia
Tasmania
Victoria
Status
Open
Date initiated

On 28 March 2024, the Australian Energy Regulator (AER) released draft guidance on applying a value of emissions reduction

Energy Ministers agreed to a method for deriving values of emissions reduction (the method). The purpose of our draft guidance is to provide stakeholders with an opportunity to comment on specific issues before issuing our final guidance which will bind the AER and regulatory investment test (RIT) proponents to the method. 

Our draft guidance also includes a table of interim values of emissions reduction derived from the method that we propose to use in our carrying out our regulatory functions, and that network businesses should use in their proposals. Our draft guidance maintains consistency with the Australian Energy Market Operator’s (AEMO) Integrated System Plan (ISP) methodology. This allows RIT proponents to comply with the ISP and our guidance. 

Stakeholder submissions closed on 18 April 2024

We will shortly commence consultation with stakeholders on the Cost Benefit Analysis and RIT application guidelines and the Expenditure Forecast Assessment Guidelines throughout 2024. This will provide stakeholders with an opportunity to engage deeply on how valuing emissions reduction is implemented. 

Key Documents

AER - Valuing emissions reduction draft guidance - March 2024

Document
Our draft guidance on applying a value of emissions reduction.