Overview

Translog opex cost function development

Quantonomics phase 1 memorandum

Our distribution benchmarking reports include productivity results from econometric opex cost function models. As a part of incrementally refining elements of the benchmarking methodology, we are continuing to examine options to improve the performance of these models and address some technical issues. On 26 November 2024, we published for consultation a memorandum prepared by Quantonomics for this purpose. Section 8.3 of the distribution benchmarking report also provides an overview of the issues. 

Submissions

Quantonomics phase 1 memorandum

We invited network businesses, energy consumers and other interested parties to make submissions to Quantonomics’ phase 1 memorandum on Translog development by 28 February 2025. We received the following submissions.

Further consultation timeline

Quantonomics phase 2 memorandum

Quantonomics is currently working on a phase 2 memorandum. This will respond to submissions on the phase 1 memorandum, as well as explore model specifications that address time varying inefficiency. We intend to release this memorandum in mid-2025, on which we will seek further submissions from interested stakeholders. Taking into account these submissions, we intend to release a position paper on Translog development by the end of 2025.