On 2 August 2021 the AER began a process to develop a standardised standard control services (SCS) capital expenditure (capex) model to use in future electricity distribution determinations. The standardised SCS capex model is intended to replace the distribution network service provide (distributor)-specific capex models that are currently in use.
Capex models map forecast capex into a format consistent with the post-tax revenue model (PTRM) in order to calculate the annual revenue requirement for each year of a regulatory control period. A standardised SCS capex model will streamline the resources and consultation required to manage the SCS capex models, and increase consistency across proposals.
Invitation for submissions
We are now seeking submissions from interested stakeholders on the preliminary standardised SCS capex model by close of business on Monday 30 August 2021.