The Australian Energy Regulator (AER) has published an interim guidance note on emissions reduction expenditure for electricity and gas.
This interim guidance note takes a principles-based approach on our expectations for expenditure forecasting in relation to emissions reduction. It covers topics related to prescribed transmission services and standard control services for electricity distribution, regulated pipeline services for gas expenditure, and other related matters such as tariffs and alternative control services, including public lighting.
In preparing the interim guidance note, we have considered stakeholder feedback received during our 2024 review of the Expenditure Forecast Assessment Guidelines, Regulatory Investment Test Guidelines and Cost Benefit Analysis Guidelines.
This interim guidance note will take effect from today. Given this is a new element of the regulatory framework, we consider that providing an opportunity for the guidance note to be implemented will contribute to more targeted feedback on any implementation challenges. This will enable a more effective update of the guidance note, to ensure it continues to be fit for purpose.
Invitation for submissions
While we have considered stakeholder feedback in preparing this interim guidance note, we consider that ongoing developments as part of the energy transition will likely require us to review this guidance note from time-to-time. Therefore, we propose to commence the consultation process in July 2026, to allow for consideration and reflection on any implementation challenges.
In July 2026, we will invite interested parties to make submissions on the interim guidance note on emissions reduction.
While we are not consulting on the guidance note until July 2026, we continue to be open to receiving any stakeholder feedback prior to this date.
We prefer that all submissions are in Microsoft Word or another readable document format. Submissions should be emailed to aerinquiry
aer [dot] gov [dot] au (aerinquiry[at]aer[dot]gov[dot]au), or alternatively can be posted to Australian Energy Regulator, GPO Box 3131, Canberra, ACT, 2601.
We will also accept verbal submissions. We request that stakeholders who wish to do so contact us at aerinquiryaer [dot] gov [dot] au (aerinquiry[at]aer[dot]gov[dot]au) to discuss in the first instance.
We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. Submissions will be treated as public documents unless otherwise requested. Parties wishing to submit confidential information should:
- clearly identify the information that is the subject of the confidentiality claim
- provide a non-confidential version of the submission in a form suitable for publication.
All non-confidential submissions will be placed on our website. For further information regarding our use and disclosure of information provided to us, see the ACCC/AER Information Policy.