a further 6 years. Again, the onus is on the AER to separate genuine efficiency savings from any overstated regulatory allowance from past decisions. Expenditure Forecast Assessment Guidelines: it is important that the AER gains an understanding of the underlying reasons for the past movements in RAB values. The NGF supports the use of top-down modelling techniques and benchmarking comparisons with inter-state DNSPs. Based on the NSW DNSPs transitional regulatory proposals, capex requirements are expected to moderate significantly over the next regulatory period. However, these reductions are from an extremely high base and would still result in substantial ongoing real increases in regulatory asset values. This is counter-intuitive given forecast decreases in demand and potential excess capacity in the opening RAB given the extraordinary level of capex spending over the past decade. The generation sector looks forward to further opportunities to comment on the setting of regulatory allowances for all network service providers in the NEM. Yours sincerely TIM REARDON
a further 6 years. Again, the onus is on the AER to separate genuine efficiency savings from any overstated regulatory allowance from past decisions. Expenditure Forecast Assessment Guidelines: it is important that the AER gains an understanding of the underlying reasons for the past movements in RAB values. The NGF supports the use of top-down modelling techniques and benchmarking comparisons with inter-state DNSPs. Based on the NSW DNSPs transitional regulatory proposals, capex requirements are expected to moderate significantly over the next regulatory period. However, these reductions are from an extremely high base and would still result in substantial ongoing real increases in regulatory asset values. This is counter-intuitive given forecast decreases in demand and potential excess capacity in the opening RAB given the extraordinary level of capex spending over the past decade. The generation sector looks forward to further opportunities to comment on the setting of regulatory allowances for all network service providers in the NEM. Yours sincerely TIM REARDON
National%20Generators%20Forum%20-%20Submission%20to%20the%20AER%20on%20regulatory%20determinations%20-%2030%20June%202014_0.docx