On 26 August 2019 the AER commenced consultation on a set of replacement expenditure (repex) modelling assumptions. The objective is to continue refining the AER's repex model. In addition, our aim is to help the industry understand the model, including how it is applied during distribution determinations. We expect that a more informed users of the repex model will mean more certainty about the likely repex modelling outcomes and more consistent treatment of repex data, promoting regulatory certainty.
We welcome all stakeholders to participate in this review.
Following the review of all written submissions, we will provide an explanatory note setting out our position on the repex modelling assumptions. Our intention is to provide this explanatory note in November 2019. In addition, we intend to apply any refinements decided in this review process in our determinations for each electricity distributor, starting with the determinations in April 2020