Overview

Translog opex cost function development

Our distribution benchmarking reports include productivity results from econometric opex cost function models. As a part of incrementally refining elements of the benchmarking methodology, we are continuing to examine options to improve the performance of these models and address some technical issues. 

We initiated a review into the performance of these models with the release for consultation of Quantonomics’ phase 1 memorandum in November 2024. We received 7 submissions. 

On 27 November 2025,  we released, for consultation, Quantonomics’ phase 2 report. We received 6 submissions.

Quantonomics phase 2 report

On 27 November 2025,  we published Quantonomics’ phase 2 report.

This report responds to submissions on Quantonomics’ phase 1 memorandum, and explores approaches to incorporating time-varying inefficiency and other refinements to model specification and estimation techniques that could improve model performance. 

The report and its supporting attachments and files are below.

Quantonomics - Report Phase 2 - 26 November 2025

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Quantonomics
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Supporting Attachments

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Calcs & Tables & Charts

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Standard Models - ABR24

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Time Varying Models

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Opportunity for Refinement Models

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Time Varying Specifications - Files Guide

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Submissions - Quantonomics phase 2 report

We invited network businesses, energy consumers and other interested parties to make submissions to Quantonomics’ phase 2 report by 27 March 2026. We received the following submissions.

Ausgrid - Submission Quantonomics Phase 2 Report - 27 March 2026

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Ergon Energy and Energex - Submission Quantonomics Phase 2 Report - 27 March 2026

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Evoenergy - Submission Quantonomics Phase 2 Report - 27 March 2026

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Evoenergy - Frontier Economics - Attachment to submission Quantonomics Phase 2 Report - 27 March 2026

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Jemena - Submission Quantonomics Phase 2 Report - 27 March 2026

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Justice and Equity Centre - Submission Quantonomics Phase 2 Report - 26 March 2026

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SA Power Networks - Submission Quantonomics Phase 2 Report - 27 March 2026

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Quantonomics phase 1 memorandum

On 26 November 2024, we published for consultation a memorandum prepared by Quantonomics which examined jurisdiction-specific time trends. Section 8.3 of the 2024 distribution benchmarking report also provides an overview of the issues. 

Quantonomics - Memorandum - Opex Cost Function Development - November 2024

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Quantonomics
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Quantonomics - Opex Cost Function Development - Supporting Files - November 2024

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Quantonomics
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Submissions - Quantonomics phase 1 memorandum

We invited network businesses, energy consumers and other interested parties to make submissions to Quantonomics’ phase 1 memorandum on Translog development by 28 February 2025. We received the following submissions.

Ausgrid - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

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Ausgrid
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AusNet Services - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

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AusNet Services
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Endeavour Energy response - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

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Endeavour Energy
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Energy Queensland - Submission on Quantonomics Translog phase 1 memo - 27 February 2025

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Energy Queensland Limited (EQL)
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Essential Energy - Submission on Quantonomics Translog phase 1 memo - 21 February 2025

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Essential Energy
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Evoenergy - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

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Evoenergy
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Jemena - Submission on Quantonomics Translog phase 1 memo - 28 February 2025

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Jemena
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