Overview

Translog opex cost function development

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. 

We initiated a review into the performance of these models with the release for consultation of Quantonomics’ phase 1 memorandum in November 2024. We received 7 submissions. 

On 27 November 2025,  we published Quantonomics’ phase 2 report. We are currently seeking submission from interested parties on Quantonomics’ phase 2 report by 13 February, 2026.

Quantonomics phase 2 report

On 27 November 2025,  we published Quantonomics’ phase 2 report.

This report responds to submissions on Quantonomics’ phase 1 memorandum, and explores approaches to incorporating time-varying inefficiency and other refinements to model specification and estimation techniques that could improve model performance. 

Quantonomics - Report Phase 2 - 26 November 2025

Authors
Quantonomics
Content type
Document

Phase 2 Report - Supporting files

Authors
Quantonomics
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Submissions - Quantonomics phase 2 report

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We invite network businesses, energy consumers and other interested parties to make submissions on Quantonomics’ phase 2 report by 13 February, 2026.

Submissions should be emailed to: AERInquiryataer [dot] gov [dot] au (AERInquiry[at]aer[dot]gov[dot]au)

Alternatively, you may mail submissions to:

Ms Kami Kaur
General Manager
Australian Energy Regulator
GPO Box 3131
Canberra, ACT, 2601

We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.

We request parties wishing to submit confidential information:

  • clearly identify the information that is the subject of the confidentiality claim
  • provide a non-confidential version of the submission in a form suitable for publication.

Quantonomics phase 1 memorandum

On 26 November 2024, we published for consultation a memorandum prepared by Quantonomics which examined jurisdiction-specific time trends. Section 8.3 of the 2024 distribution benchmarking report also provides an overview of the issues. 

Quantonomics - Memorandum - Opex Cost Function Development - November 2024

Authors
Quantonomics
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Document

Quantonomics - Opex Cost Function Development - Supporting Files - November 2024

Authors
Quantonomics
Content type
Document

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.

Ausgrid - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

Authors
Ausgrid
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Document

AusNet Services - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

Authors
AusNet Services
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Document

Endeavour Energy response - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

Authors
Endeavour Energy
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Document

Energy Queensland - Submission on Quantonomics Translog phase 1 memo - 27 February 2025

Authors
Energy Queensland Limited (EQL)
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Document

Essential Energy - Submission on Quantonomics Translog phase 1 memo - 21 February 2025

Authors
Essential Energy
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Document

Evoenergy - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

Authors
Evoenergy
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Document

Jemena - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

Authors
Jemena
Content type
Document