Essential Energy - Determination 2024–29

Sector: 
Segment: 
Commencement date: 
21 October 2021
Regulatory period: 
1 July 2024 to 30 June 2029 (5 years)
Status: 
Contact: 
General enquiries - Resets 2024-29, General enquiries - Resets 2024-29 AERresets2024-29@aer.gov.au
AER reference: 
AER212494

Overview

On 8 November 2021,  we released a Notice on whether to amend or replace the current Framework and Approach (F&A) for Essential Energy and received several submissions. On 10 December 2021, we issued a decision to replace Essential Energy's F&A. 

On 11 April 2022, we published the Framework and Approach Preliminary Position paper for the NSW, ACT, NT and Tasmanian businesses (including TAS transmission) for the regulatory control period commencing 1 July 2024. On 28 April 2022, we held the NSW Framework and Approach Forum and have published the presentation slides online.

Submissions to our preliminary position paper closed on 20 May 2022 and have now been published. 

On 30 June 2022, Essential Energy submitted the methodology it proposes to use to prepare the forecasts of operating expenditure and capital expenditure that form part of its regulatory proposal.

On 29 July 2022, we published the final Framework and approach for Essential Energy for the 2024-29 regulatory control period commencing 1 July 2024 to 30 June 2029.

Background

Essential Energy is an electricity distribution network service provider. Its next five year regulatory control period commences on 1 July 2024 to 30 June 2029 (2024-29).

Under the NER, Essential Energy is required to submit its regulatory proposal to us by 31 January 2023. However, prior to that date, the NER require us to review the current F&A paper that applies to Essential Energy and decide whether to amend or replace it.

The F&A is the first step in the reset process and 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 distribution businesses prepare expenditure proposals.