The AER is conducting a review of its ICT expenditure assessment methodology. This review is part of our continuous improvement of our regulatory toolkit for assessing electricity determinations and will help to ensure that energy consumers pay no more than necessary for the safe and reliable distribution of electricity.
ICT is increasingly becoming a more integral component of delivering energy services. In line with this, we are considering whether our current set of ICT expenditure assessment tools are fit for purpose both now and into the future.
We have started a review of our current ICT Expenditure Assessment approach and have developed some preliminary thinking which we now wish to discuss with stakeholders to assist us in developing our views. In this paper we outline a suggested revised assessment approach, however, the views we hear on our outlined approach will be used to further refine our assessment.
More details on the techniques we currently apply to assess a distributor’s expenditure assessment proposals is provided in our Expenditure forecast assessment guideline.