the australian energy regulator tasnetworks public forum revenue proposal 1 july 2014 to 30 june...
TRANSCRIPT
The Australian Energy Regulator
TasNetworks Public Forum
Revenue Proposal1 July 2014 to 30 June 2019
9 July 2014
AgendaRegistrations and coffee (9.30 – 10.00) Introduction and the AER’s process (10.00-10.15) –
Andrew ReevesTasNetworks presentation (10.15 – 11.00)AEMO presentation (11.00-11.30)Morning tea (11.30 -11.45)CCP presentation (11.45 – 12.15pm)Q & A (12.15-12.45pm)AER wrap-up (12.45-13.00pm)
Introduction Forum held to assist AER in making transmission
determination for TasNetworks (Transend) under Chapter 6A of the National Electricity Rules (NER)
The AER will set TasNetworks revenue cap for a 5 year period from 1 July 2014 to 30 June 2019
TasNetworks’ revenue proposal, proposed negotiating framework and proposed pricing methodology are available on the AER website
Issues paper released to assist stakeholders in making submissions
Written submissions are invited by 1 August 2014
Regulatory framework
AEMC’s new rules in place 2012
AER’s Better Regulation Program finalised in 2013
Framework and Approach (F&A) paper released in January 2014
Transitional decision 28 March 2014
AER’s review processThe AER will assess TasNetworks’ revenue
proposal, including pricing methodology, against the NER requirements
Interested parties are invited to make submissions to the AER on the initial and revised revenue proposals
Separate to this review, AER will also publish its first benchmarking report by 30 September 2014
Timeline – key dates Proposal received 2 June 2014 Public forum 9 July 2014 Submissions due 1 August 2014 Draft decision 30 Nov 2014 Pre-determination conference December 2014 TasNetworks’ revised proposal January 2015 Submissions due February 2015 Final Pricing Methodology 28 March 2015 Final decision due 30 April 2015 New network charges commence 1 July 2015
How does proposal affect consumers Transend–Indicative transmission price path from 2009–10 to 2018–19 ($/MWh, nominal)
0.0
5.0
10.0
15.0
20.0
25.0
Actual Approved Transitional decision Proposed
AER approach Our analysis of the revenue proposal will necessarily consider
each of the revenue components and any inter-relationships between these components as we must decide the businesses revenues as a whole.
In assessing the proposed revenue, we will have regard to our ‘Better Regulation’ Guidelines, including:
◦ For capex and opex we will have regard to our Expenditure Assessment Guideline – and the results from our first benchmarking report
◦ For the cost of financing (require rate of return) we will have regard to our Rate of Return Guideline
We will be interested in hearing consumer views on Transend’s consumer engagement initiatives (including engagement on its proposed changes to the pricing methodology)