Power and Water Corporation - Determination 2024–29

Sector: 
Segment: 
Commencement date: 
29 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: 
AER212492

Overview

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

Due to limited numbers, we cancelled the ACT, NT and Tasmanian jurisdictional forums. We will arrange, where requested, one-on-one meetings with interested stakeholders in those jurisdictions and welcome interested parties to contact us at AERResets2024-29@aer.gov.au. 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.

Background

Power and Water Corporation 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, Power and Water Corporation 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 Power and Water Corporation 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.