The AER is seeking views from stakeholders to develop guidance that can be provided to network distribution service providers (DNSPs). The Consultation Paper – Assessing Distributed Energy Resources (DER) Integration Expenditure released on 19 November 2019 considers how the AER may assess DNSP’s proposed expenditure to manage the increasing challenge of accommodating DER on their networks. In particular, the paper considers:
- the current and predicted effects DER is having on networks,
- the AER’s current approach to assessing DER integration expenditure, and
- whether our current set of expenditure assessment tools are fit for purpose both now and into the future.
DER integration is an emerging area of expenditure. This consultation is part of our continuous review of our regulatory toolkit for assessing electricity determinations and will support consumers to pay no more than necessary, for the safe and reliable distribution of electricity. More details on the techniques we currently apply to assess a distributor’s expenditure assessment proposals is provided in our Expenditure forecast assessment guideline.
We invited written submissions between 19 November 2019-20 January 2020; the views we received from stakeholders on this paper will be used to refine our assessment approach.