Profitability measures for electricity and gas network businesses

Status: 
Date initiated: 
8 November 2017
Effective date: 
16 December 2019
Contact: 
AER General inquiries AERInquiry@aer.gov.au
AER reference: 
61378

Overview

On 16 December 2019, we published our Final Position Paper on our review into measures of profitability for the electricity and gas Network Service Providers (NSPs) we regulate.

These measures will allow us to report and compare the returns of NSPs and contribute to achievement of the National Electricity Objectives (NEO) and the National Gas Objectives (NGO) by making the NSPs' returns and their drivers transparent.

This information will assist us and stakeholders by providing an additional source of information with which to review the overall effectiveness of the regulatory regime. This reporting should also assist stakeholders in making submissions on NSPs' regulatory proposals and to other regulatory processes. 

The Final Position Paper is the culmination of over two years of analysis and engagement by NSPs, industry representatives, consumers, consumer representatives, technical experts and us.

We will begin collecting data from the NSPs in early 2020 with the expectation that we will begin to report on the profitability measures set out in our Final Position Paper in mid-2020.