Essential Energy is a NSW electricity distribution business. Its next 5 year regulatory control period commences on 1 July 2019 to 30 June 2024. Under the NER, Essential Energy is required to submit its regulatory proposal to us by 31 January 2018. However, prior to that date, the NER requires us to review the current Framework and Approach (F&A) that applies to Essential Energy and decide whether to amend or replace it.
The F&A is the first step in the process to determine efficient prices for electricity distribution services. The F&A determines, amongst other things, which services we will regulate and the broad nature of the regulatory arrangements. This includes an assessment of services (service classification) and whether we need to directly control the prices and/or revenues set for those services The F&A also facilitates early consultation with consumers and other stakeholders and assists electricity distribution businesses prepare expenditure proposals.
On 10 March 2017, we published our preliminary F&A for Essential Energy. Submissions closed on 21 April 2017. Further information is available under 'AER Position'.