The AER has published new versions of the post-tax revenue models (PTRMs) that apply to future electricity distribution and transmission determinations. The new versions give effect to the changes set out in the AER’s final position paper on the treatment of inflation in its regulatory framework. The amendments allow for:
- a shortened period over which we calculate our estimate of expected inflation from ten years to match the regulatory period
- an adjustment mechanism to recognise that in future it may take longer than previously for inflation to settle back into the Reserve Bank’s target band.
On 7 April 2021, in accordance with clauses 6.4.1(b) and 6A.5.2(b) of the National Electricity Rules, the AER published:
- An amended distribution PTRM (version 5) and associated handbook.
- An amended transmission PTRM (version 5) and associated handbook.
- A final decision document and associated log of detailed changes to the PTRMs.