Gas revenue models (transmission and distribution) - April 2021 amendment

  • Accepting submissions
Sector: 
Status: 
Date initiated: 
17 December 2020
Contact: 
General enquiries - Model reviews (02) 9230 3867 ModelReviews@aer.gov.au

Overview

The AER has released its proposed amendments to the transmission and distribution post-tax revenue models (PTRMs) under the National Gas Rules. The proposed amendments 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.

The explanatory statement explains the proposed amendments, and the reasons for our proposed approach. These proposed amendments are implemented in the amended PTRMs and revised PTRM handbooks.

We invite stakeholders to make written submissions on our proposed amendments by 3 February 2021.