Annual pricing process review

Sector: 
Segment: 
Status: 
Date initiated: 
27 August 2021
Contact: 
General enquiries - Pricing, General enquiries - Pricing AERPricing@aer.gov.au
AER reference: 
AER213041

Overview

The AER is undertaking a review into improving the annual pricing process for electricity distribution network service providers (distributors). The aim of this review is to develop a process to facilitate more timely and accurate annual pricing approvals as well as improve the presentation of pricing outcomes for stakeholders.

The initial phase of this review will be undertaken in two stages:

  • Firstly, the AER will consult with distributors to develop a better process for the AER's assessment of pricing proposals, including a formal pre-lodgement engagement process and a standardised pricing model. This stage is expected to be completed in December 2021 to be implemented for the 2022/23 pricing process.
  • Secondly, the AER will consult more broadly to further develop the standardised pricing model to improve the transparency and accessibility of the pricing proposals and relevant outcomes. This second stage is likely to also consider the development of standardised templates to be used for the pricing proposal documents. This stage is expected to be completed in December 2022 to be implemented for the 2023/24 pricing process.

The development of these aspects for the annual pricing approval process follows our commitment in the AER Strategic Plan 2020–2025 to design our systems to work in ways that deliver efficient regulation of monopoly infrastructure.