Review of our approach to forecasting opex productivity growth for electricity distributors

Sector: 
Segment: 
Status: 
Date initiated: 
12 September 2018
Effective date: 
30 April 2019
Contact: 
AER General inquiries AERInquiry@aer.gov.au

Overview

We are currently reviewing and refining our approach to forecasting operating expenditure (opex) productivity growth for electricity distributors.

Productivity growth is one element in the trend component of our opex forecasting approach. Our forecast of opex productivity growth is intended to capture the efficiency improvements distributors can make in providing distribution services. More details on how we use the forecast opex trend to assess distributors’ opex proposals are outlined in our Expenditure forecast assessment guideline.

This review is part of our continuous improvement of our regulatory toolkit and will help to ensure that energy consumers pay no more than necessary for the safe and reliable distribution of electricity.

We released a draft decision paper on 9 November 2018. Submissions were due by 21 December 2018. 

We will publish a final decision paper once we have considered all stakeholder feedback.

Stakeholder forum

We held a workshop on 30 November 2018 for stakeholders to share their views on our draft decision paper. The presentation materials discussed at the workshop are now available on our website.