The AER has today announced that it will develop template financial models that regulated gas network service providers must use as part of their access arrangement proposals under the National Gas Rules (NGR). The financial models will comprise of template capital base roll forward models (RFMs) and revenue models.
The gas final model templates will be developed in accordance with the recent changes to the NGR regarding the regulation of covered pipelines. This rule change allows the regulator to prepare and publish consistent financial models that service providers must use as part of the access arrangement review process to construct the capital base, and the total revenue calculated using the building block approach.
The current electricity models are intended to be used as the base template from which any gas specific amendments will be made. The consultation process for development of the gas financial models will be made in tandem with the amendments to the electricity RFMs to ensure efficient stakeholder engagement. It is expected that any amendments required for the electricity RFMs will also be reflected in the new gas models.
Proposed project timeline and milestones
|August-September 2019||Informal consultation with stakeholders (preliminary draft models)|
|December 2019||Draft models released for consultation|
|January 2020||Submissions on draft models due|
|March 2020||Final models released|