The AER has released draft distribution determinations that will apply to Victorian electricity distribution networks AusNet, Jemena, CitiPower, Powercor and United Energy for the 2026-31 regulatory period.
Regulated electricity distribution network service providers must periodically apply to us to determine the maximum allowed revenue they can recover from consumers for using their networks. On 31 January 2025, we received regulatory proposals from 5 Victorian DNSPs for the period 1 July 2026 to 30 June 2031 (2026-31 period).
Our draft decisions on expected revenues for the 2026-31period are ($nominal smoothed):
- AusNet Services: $4,428.3 million, or $562.5 million (11.3%) less than proposed.
- Jemena Electricity Networks: $1,727.8 million, or $260.7 million (13.1%) less than proposed.
- CitiPower: $1,964.9 million, or $112.7 million (5.4%) less than proposed.
- Powercor: $4,955.9 million, or $540.0 million (9.8%) less than proposed.
- United Energy: $2,785.7 million, or $234.9 million (7.8%) less than proposed.
Victoria’s energy market is undergoing an important transition. Reliability, resilience, and safety are key to supporting greater electrification of homes and businesses and a growing role for consumer energy resources.
Victorian distribution network service providers have responded to these shifts by proposing significant increases in revenue for the 2026-31 regulatory period.
We acknowledge the extensive community engagement undertaken by the distribution network businesses in developing their revenue proposals and the support from stakeholders for initiatives that support least cost networks that deliver the services needed reliably, safely and with greater resilience to extreme weather events.
In these draft decisions we have approved prudent and efficient expenditure for the distribution network businesses to meet these challenges, fulfil their regulatory obligations and deliver on consumer and community preferences.
However, our draft decisions outline several areas where proposals have not provided the level and quality of supporting analysis needed to satisfy us that proposed expenditure is prudent and efficient or reflects a realistic expectation of future demand and cost inputs according to the requirements of the National Energy Rules. Our draft decisions identify areas in which further work by the distribution network businesses is needed to ensure their expenditure proposals meet these objectives.
The proposals submitted to the AER also need to look beyond capital and operating expenditure to manage the transition. Our draft decisions encourage further consideration of how cost reflective tariffs can encourage more efficient use of networks, reducing the need for further investment.
We value and welcome feedback from all stakeholders on these draft decisions so that it can be considered alongside revised proposals as we make our final decisions.
Next steps
The businesses have until 1 December 2025 to respond to their respective draft decisions with a revised proposal.
We encourage businesses to continue to take a consultative process on key elements of our draft decision to ensure that consumer views are reflected in their revised proposals.
The AER will hold an online public forum on the draft decisions on 14 October 2025. Stakeholders can register their interest in the forum via our website.
Interested stakeholders are invited to provide submissions on the draft decisions and revised proposals by 19 January 2026. Submissions and requests to make a submission via alternative methods should be emailed to Vic2026
aer [dot] gov [dot] au (Vic2026[at]aer[dot]gov[dot]au).
The AER’s final determinations, which will be made by 30 April 2026, will set revenues that will form the basis for the charges for the 1 July 2026 to 30 June 2031 regulatory period.