In the annual benchmarking reports, we (the AER) examine the relative efficiency of the distribution and transmission electricity network service providers. In doing this we consider the characteristics of each network business, and how their productivity compares at the aggregate level and for the outputs they deliver to consumers.
We prepare the benchmarking results using publically available data and benchmarking techniques that we developed after an extensive consultation process that aligned with the development of our expenditure forecast assessment guideline.
As part of our ongoing improvement to economic benchmarking, we are refining elements of the benchmarking methodology and data in consultation with industry and other interested parties. Our first area of review is the specifications for transmission benchmarking. We published an issues paper in April 2017. On 31 May 2017, we held an industry workshop to discuss responses received from interested parties to the issues paper.
On 10 August 2017, we released a position paper prepared by our consultant, Economic Insights. Submissions to the position paper closed on 30 August 2017.
After considering submissions to the position paper and further advice from Economic Insights changes to the output model specification for TNSP benchmarking were introduced in the 2017 TNSP Benchmarking Report.
A description of the updated TNSP benchmarking specifications, stakeholder submissions on the updates and our rationale for the changes can be found in the 2017 TNSP Benchmarking Report and Economic Insight Report to the AER.
General enquiries about our benchmarking reports should be directed to the AER at AERInquiry@aer.gov.au, or call on 1300 585 165.