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

  • Accepting submissions
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.

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.

Invitation for submissions

We released a draft decision paper on 9 November 2018. Interested stakeholders are invited to provide written submissions by Friday 21 December 2018. We also intend to hold a workshop to discuss the issues. We will provide details for the workshop shortly.

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