Consumer input vital on Evoenergy draft decision: AER

Consumer engagement has helped the Australian Energy Regulator (AER) remake its draft determination on the amount of revenue Evoenergy can recover for the 2014-19 regulatory period.

“We are satisfied this decision is in the long-term interests of consumers and will promote price stability at a time where affordability is a key concern for many consumers,” said AER chair Paula Conboy.

The remade draft decision means Evoenergy will be allowed to recover revenues of $815.6 million from its customers over the five‑year regulatory period. Evoenergy proposed this figure and the AER accepted it. A final decision is due in November.

The remaking of the determination follows the end of limited merits and judicial review processes in May 2017 arising from the AER’s 2015 final decision.

In 2015, Evoenergy proposed to recover $1,036.2 million from consumers over the 2014-19 regulatory period, but the AER did not accept this amount in its determination and legal action followed. Key elements of the original determination disputed included claims of approximately $83 million for operating expenditure and $41 million in return on debt.

Ms Conboy welcomed the collaborative approach taken by Evoenergy in developing its proposal.

“Evoenergy consulted closely with consumers. Several consumer groups have indicated their support for Evoenergy’s initiative and collaborative approach in formalising its proposal.

“This outcome is an excellent example of how engaging with consumers in a revenue setting process can benefit everyone. This is the type of approach the AER is encouraging network businesses to adopt to drive more consumer-focused outcomes across national energy markets,” said Ms Conboy.

The AER welcomes further comment from consumers and other interested stakeholders as it moves toward making a final decision later this year. Stakeholders are invited to make written submissions on the draft decision by 5 October.

Under a separate determination process, the AER expects to release its draft decision on Evoenergy’s revenue proposal for the next (2019‑24) regulatory period, in late September.

Issued date: 
6 September 2018
AER reference: 
NR 26/18
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