AER presentation - JGN capex remittal round table - 18 January 2018

In February 2016 the Australian Competition Tribunal remitted to the AER to make its constituent decision on capital expenditure. There will not be an issues paper on capital expenditure. Instead, the AER hosted a roundtable meeting with JGN and the AER's Consumer Challenge Panel - subpanel 10 (CCP) on 18 January 2018. The purpose of the meeting was to discuss and work toward a potential resolution on the AER's 2015-20 set aside determination on market expansion capital expenditure (ME capex). Issues discussed at the meeting included the AER's proposed approach to remaking the ME capex decision, JGN's response to the AER's proposed approach, JGN's ME capex to date for the currently regulatory period, and the CCP's view on the remittal process and expectations from the consumer perspective. The slides from the meeting are presented below. At the meeting, JGN noted that it had reviewed the AER's model and agreed that it implements the AER's preferred approach. JGN committed to working constructively with the AER as it finalises its review of ME capex. Parties did not raise any outstanding issues about the AER's proposed ME capex allowance. The AER will aim to release its draft decision for stakeholder consultation in the first half of 2018.