Market Review: Open

Overview

The annual review of the economic regulatory framework for electricity networks is part of the AEMC’s work to support the continual evolution of the energy sector. In light of the significant growth in decentralised energy resources, the review will examine whether the economic regulatory framework is robust, flexible and continues to support the efficient operation of the energy market in the long term interest of consumers. We do this by monitoring changes and developments in the national electricity market (NEM) and where necessary, recommend changes to the economic regulatory framework to the COAG Energy Council.
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The annual review of the economic regulatory framework for electricity networks is part of the AEMC’s work to support the continual evolution of the energy sector. In light of the significant growth in decentralised energy resources, the review will examine whether the economic regulatory framework is robust, flexible and continues to support the efficient operation of the energy market in the long term interest of consumers. We do this by monitoring changes and developments in the national electricity market (NEM) and where necessary, recommend changes to the economic regulatory framework to the COAG Energy Council.

We will also use the annual review to implement one of the recommendations from Dr Alan Finkel’s Independent Review into the Future Security of the National Electricity Market to conduct financial modelling to test whether distribution network businesses have a preference for capital investments in network assets over operational expenditure on demand-side measures and, if so, consider alternative models.

The 2018 review will focus on the following three areas:

  • Annual monitoring of network service providers’ (NSPs’) expenditure and performance
  • Financial incentives for NSPs in providing economically regulated services
  • Economic regulation and arrangements for distribution network access and connection in the context of distributed energy resources

Each of the focus areas is discussed further in the Information Sheet.

Stakeholder forums

We will be seeking stakeholders’ views through stakeholder workshops in March/April 2018.

The first of these forums will focus on financial incentives facing NSPs. Stakeholders can now register for this forum to be held in Sydney on 23 April 2018. 

Review timing

Review initiation February 2018
Stakeholder forum on network incentives 23 April 2018
Stakeholder forum on economic regulation access and connection arrangements in the context of DER Mid-late May 2018
Final report publication End June 2018

 

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Documentation

DOCUMENTATION

AEMC Documents

Consultant's Reports

Incentives Stakeholder Forum Documents

Stakeholder submissions