The AER has announced that it will amend the current electricity RFMs in line with the amendments it recently made to the electricity post-tax revenue models (PTRMs) impacting the roll-forward of assets for tax purposes. The amendments to the RFMs (distribution and transmission) will give effect to changes set out in the AER’s final report on the review of regulatory tax approach relevant to rolling forward the tax asset base. The AER will also develop a default approach to implement year-by-year depreciation tracking of the regulatory and tax asset bases.
The indicative timeline for the amendment of the electricity RFMs is shown below. The consultation process for amendments to the electricity RFMs will be made in tandem with the development of the gas financial models to ensure efficient stakeholder engagement.
Table 1: Proposed project timeline and milestones
|August-September 2019||Informal consultation with stakeholders (preliminary draft models)|
|December 2019||Draft models released for consultation|
|January 2020||Submissions on draft models due|
|March 2020||Final models released|