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, 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 whether it is necessary or desirable to amend or replace the F&A. 

On 10 December 2021, we issued a decision to replace Essential Energy's F&A. In early 2022, we will release our preliminary Framework and Approach for the New South Wales distributors for consultation. 

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.