In the annual benchmarking reports, we examine the relative efficiency of the distribution and transmission electricity network service providers. In doing this, we consider the characteristics of each network business, and how their productivity compares at the aggregate level and for the outputs they deliver to consumers. We developed the report using publicly available data that we collected after an extensive consultation process that aligned with the development of our Expenditure Forecast Assessment Guideline.
The AER has also released a consultation paper that commences a process to better understand and account for the impacts of different capitalisation practices (that is, how costs are allocated) on its distribution benchmarking results. This process will examine the impact of differences both between distribution businesses and over time, and will explore potential methods to address material impacts.
Enquiries about these reports should be directed to the AER at AERInquiry@aer.gov.au, or call on 1300 585 165.