On 27 August 2021, we distributed a position paper to electricity distribution network service providers (distributors) for consultation. This paper sets out the AER's proposed approach for a formal pre-lodgement engagement process. The paper also set out our proposed approach to standardise the pricing model that supports pricing proposals, and was accompanied by a preliminary version of that model.

We invited the distributors to provide feedback on our proposed approaches by 24 September. We also invited the distributors to provide feedback on potential future work that could be undertaken in later phases of the project.

We invited written submissions from distributors on our position paper. Submissions closed on 24 September 2021. These submissions are available below.

We invited written submissions from distributors on draft versions of the pricing models. Submissions closed on 12 November 2021. These submissions are available below. We also engaged with some distributors directly.

On 20 December 2021, we released a final position paper on stage 1 of our annual pricing process review. This paper sets out the outcome of the first stage of our review.

This final position paper is accompanied by a document outlining the formal pre-lodgement engagement process, pricing model and price-capped ACS pricing model templates, and a handbook to accompany the models. These documents and models will be used by the AER and electricity distributors in the upcoming 2022/23 annual pricing process.

In the second half of 2022, we intend to progress the next stage of the review. The next stage of this process will explore the transparency and accessibility of the pricing proposal and relevant outcomes and will be undertaken in the second half of 2022. We will also revise the pre-lodgement engagement process, standardised models, and handbook as necessary for any issues that arose in the 2022/23 annual pricing process.