On 19 December 2019 we published our preliminary Framework and Approach for Victorian transmission service provider, AusNet Services. Submissions closed on 3 February 2020. We received two submissions which are available from the 'AER Positions' tab.
AusNet Services is the Victorian electricity transmission business. Its next 5 year regulatory control period commences on 1 April 2022. Under the NER, AusNet Services is required to submit its regulatory proposal to us by 31 October 2020. However, prior to that date, the NER requires us to review the current Framework and Approach (F&A) that applies to AusNet Services and decide whether to amend or replace it.
The F&A is the first step in the process to determine efficient prices for electricity transmission. The F&A sets out how we propose to apply a range of incentive schemes and other guidelines as well as our approach to calculating depreciation. The F&A also facilitates early consultation with consumers and other stakeholders and assists electricity transmission businesses prepare expenditure proposals.
The positions we set out in the F&A paper are not binding on the AER or AusNet Services.
On 30 July 2019 AusNet Services submitted to the AER a request to develop a replacement F&A to apply to its next transmission determination process for the 2022-27 regulatory control period. An indicative timetable for the determination process is set out in the initiation milestone web page.
On 2 August 2019 the AER released a Notice and Information Sheet on whether to amend or replace the current AusNet Services F&A. Interested parties were invited to make a submission on whether to amend or replace the current AusNet Services F&A by close of business on 30 August 2019. No submissions were received.
On 20 September 2019 the AER issued a decision to replace AusNet Services' F&A.