Ensuring that the benefits on the merits of the AER considering review 2012 tasked AEMC with associated with reducing the difference between actual and review on 18 January demand can be shared forecast demand in the prior 2013. between network determination period when undertaking AEMC Final Report AEMC March 2013 Completed SCER – businesses and the current determination. This could provided Final Report consumers include analysis of which party bears on 26 April 2013. the risk when forecasts are not realised and the difference of impact depending Policy response SCER May 2013 Completed – on whether the control mechanism sets agreed published in SCER prices or revenue. The AEMC advice Bulletin 31 May 2013. should include a draft rule change if considered necessary. Advice from AEMO June 2013 (to Not required. Subject to and AER about any be in place by transitional necessary next round of arrangements from amendments to the regulatory the rule AEMC’s Rules determinations, change with AEMC considering for one year) 12.2) Request AEMO to provide Tasking SCER December Completed 18 – independent demand forecasts to the 2012 January 2013. AER in a manner which will enhance Advice from AEMO AEMO and AER March 2013 Completed April – the AER's ability to analyse demand and AER about any 2013. forecasts submitted by network necessary businesses. AEMO (in consultation amendments to the with the AEMC/AER) to also provide its Rules assessment of the information requirements necessary to undertake Submit rule change SCER May 2013 (to In progress SCER Subject to – the task and whether it considers it has proposal (if required) be in place by agreed on 31 May transitional adequate access to this information. next round of 2013 to the need for arrangements from regulatory rule change and the rule AEMC’s
Ensuring that the benefits associated with reducing demand can be shared between network businesses and consumers on the merits of the AER considering the difference between actual and forecast demand in the prior determination period when undertaking the current determination. This could include analysis of which party bears the risk when forecasts are not realised and the difference of impact depending on whether the control mechanism sets prices or revenue. The AEMC advice should include a draft rule change if considered necessary. review 2012 tasked AEMC with review on 18 January 2013. AEMC Final Report AEMC March 2013 Completed – SCER provided Final Report on 26 April 2013. Policy response agreed SCER May 2013 Completed – published in SCER Bulletin 31 May 2013. Advice from AEMO and AER about any necessary amendments to the Rules June 2013 (to be in place by next round of regulatory determinations, with AEMC considering for one year) Not required. Subject to transitional arrangements from the AEMC’s rule change 12.2) Request AEMO to provide independent demand forecasts to the AER in a manner which will enhance the AER's ability to analyse demand forecasts submitted by network businesses. AEMO (in consultation with the AEMC/AER) to also provide its assessment of the information requirements necessary to undertake the task and whether it considers it has adequate access to this information. Tasking SCER December 2012 Completed – 18 January 2013. Advice from AEMO and AER about any necessary amendments to the Rules AEMO and AER March 2013 Completed – April 2013. Submit rule change proposal (if required) SCER May 2013 (to be in place by next round of regulatory In progress – SCER agreed on 31 May 2013 to the need for rule change and Subject to transitional arrangements from the AEMC’s rule
Progress-Report-Mid-2013.docx