Distribution revenue smoothing in NSW and ACT – final determinations

01 August 2017

The AEMC today published final rule determinations that will allow NSW and ACT distribution businesses to recover any increased or decreased revenue that results from the Australian Energy Regulator’s remaking from its 2015 determinations for distribution network businesses. 

The final rules are more preferable rules, and allow for any changes in revenue as a result of the remade determinations to be ‘smoothed’ and recovered from customers over the current regulatory control period (2014-2019) and the next regulatory control period starting on 1 July 2019.

In March 2016 the AER applied to the Federal Court for a judicial review of the Australian Competition Tribunal’s decisions on the NSW and ACT distribution network revenue determinations for the 2014-2019 period . The Federal Court made orders on 4 July 2017 requiring the AER to remake the 2015 determinations. This process is currently underway.

The two rule change requests - one submitted jointly by the NSW distribution network businesses (Ausgrid, Endeavour Energy and Essential Energy) and the other submitted by ActewAGL - proposed that any revenue adjustments that may result from the outcome of the judicial review proceedings be recovered over two regulatory control periods, to minimise price volatility for customers.

Media: Communications Director, Prudence Anderson 0404 821 935 or DL (02) 8296 7817