The AEMC has published a consultation paper on a rule change request from TasNetworks to change the timing of the application of the Australian Energy Regulator’s revised Rate of Return Guidelines to its distribution business.
TasNetworks proposes to apply the current, rather than revised, Rate of Return Guideline in its 2019–2024 revenue proposals for both its transmission and distribution businesses. Under arrangements put in place last year, the revised Rate of Return Guidelines will apply to TasNetworks’ next distribution revenue proposal and the current Rate of Return Guidelines to its next transmission revenue proposal.
By basing its revenue proposals on one rather than two Rate of Return Guidelines, TasNetworks stated this would reduce costs associated with preparing and making its proposals. This change may also make it easier and provide a more streamlined assessment process for stakeholders and the Australian Energy Regulator.
TasNetworks is the only network business affected by this inconsistency. The rule change request does not propose to alter any arrangements for other network service providers.
The AEMC will consider this rule change as non-controversial under an expedited rule making process, subject to the receipt of any written objections from stakeholders by 5 September 2017.
Submissions on the rule change request are due 19 September 2017. A final determination is due 3 October 2017.