Overview

Review

On 7 April 2020, we decided to review the treatment of inflation in our regulatory framework, including the method likely to result in the best estimates of expected inflation.  

Indicative timetable

Indicative dates for key milestones in the decision making process
Milestone Date*
Initiation notice  7 April 2020
Discussion paper May 2020
Draft position paper September 2020
Final position paper December 2020

*Please note this timeline is subject to change.

Consumer Reference Group

To assist in representing the perspectives and interests of consumers in this important review we established the Consumer Reference Group (CRG).

CRG - Factsheet - What is the CRG? - September 2020

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Consumer Reference Group (CRG)

CRG - Factsheet - Inflation 1 - September 2020

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Consumer Reference Group (CRG)

CRG - Factsheet - Inflation 2 - September 2020

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Consumer Reference Group (CRG)

Discussion paper

On 25 May 2020, we released a discussion paper on our treatment of inflation in our regulatory framework. The discussion paper explores the treatment of inflation in our determination of revenue and prices for electricity and gas network services and invites stakeholder submissions.

Submissions

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We invited interested parties to make submissions on our discussion paper on the treatment of inflation. Submissions closed on 29 July 2020.

AGIG - Submission to discussion paper - 2020 inflation review - July 2020

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Australian Gas Infrastructure Group (AGIG)

APGA - Submission to discussion paper - 2020 inflation review - July 2020

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Australian Pipelines and Gas Association (APGA)

CRG - Submission to discussion paper - 2020 inflation review - July 2020

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Consumer Reference Group (CRG)

ECA - Submission to discussion paper - 2020 inflation review - July 2020

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Energy Consumers Australia (ECA)

ENA - Submission to discussion paper - 2020 inflation review - July 2020

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Energy Networks Australia (ENA)

EUAA - Submission to discussion paper - 2020 inflation review - July 2020

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Energy Users Association of Australia (EUAA)

MEU - Submission to discussion paper - 2020 inflation review - July 2020

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Major Energy Users Inc (MEU)

NSG - Submission to discussion paper - 2020 inflation review - July 2020

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Network Shareholder Group (NSG)

PIAC - Submission to discussion paper - 2020 inflation review - July 2020

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Public Interest Advocacy Centre (PIAC)

QTC - Submission to discussion paper - 2020 inflation review - July 2020

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Queensland Treasury Corporation (QTC)

Late submissions

ENA - Email - Follow-up to AER Technical Inflation Workshop - August 2020

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Energy Networks Australia (ENA)

ENA - Letter to AER Board - August 2020

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Energy Networks Australia (ENA)

CRG - Letter to AER Board - September 2020

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Consumer Reference Group (CRG)

ENA - CEG amended AER simulator to include hybrid spproach - August 2020

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Competition Economists Group (CEG)

Stakeholder forum

On 2 July 2020, the AER hosted a stakeholder forum to discuss the issues/matters raised in our discussion paper.

Consultant reports

The AER engaged consultants to consider a range of issues relevant to the inflation review. On 16 July, we published an updated version of Sapere's report to correct a typographical error in table 2 on page 22. 

Stakeholder forum - Technical workshop

We held a technical workshop on Thursday 13 August 2020 to explore scenarios and mechanics for possible changes to the regulatory framework for the treatment of inflation.

The material discussed at the workshop is provided below.