demands of the new regulatory regime drawing on the experience of the transitional period. Strengthening the Welcome the Economic Rule finalised AEMC Nov 2012 AER consulting on AEMC’s regulatory outcomes Regulation of Network Service key implementation Providers Rule change which will lead issues under its Ensuring that the rules to more efficient outcomes in setting Better Practice equip the Regulator to revenues and prices for consumers by Regulation program. reach efficient regulatory giving greater scope to the AER to outcomes in the long term adapt its approaches to the nature of interests of consumers the business it is regulating, clarifying the powers of the regulator to undertake benchmarking and publish information on the relative efficiency of electricity network businesses, and changing how the rate of return on capital (a key driver of network revenues) is set. Call for the rapid implementation of N/A N/A N/A Completed AER – these rules so that consumers see their managing benefits in upcoming regulatory implementation. determination processes (especially any changes to the weighted average cost of capital regime). Note the N/A N/A N/A The report Productivity Commission’s PC’s final (PC) finding in its draft report for its and Australian inquiry into Electricity Network Government Regulatory Frameworks that efficiency response released on benchmarking may be an important tool 26 June 2013. for the regulator as the rigour and accuracy of benchmarking
demands of the new regulatory regime drawing on the experience of the transitional period. Strengthening the regulatory outcomes Ensuring that the rules equip the Regulator to reach efficient regulatory outcomes in the long term interests of consumers Welcome the AEMC’s Economic Regulation of Network Service Providers Rule change which will lead to more efficient outcomes in setting revenues and prices for consumers by giving greater scope to the AER to adapt its approaches to the nature of the business it is regulating, clarifying the powers of the regulator to undertake benchmarking and publish information on the relative efficiency of electricity network businesses, and changing how the rate of return on capital (a key driver of network revenues) is set. Rule finalised AEMC Nov 2012 AER consulting on key implementation issues under its Better Practice Regulation program. Call for the rapid implementation of these rules so that consumers see their benefits in upcoming regulatory determination processes (especially any changes to the weighted average cost of capital regime). N/A N/A N/A Completed – AER managing implementation. Note the Productivity Commission’s (PC) finding in its draft report for its inquiry into Electricity Network Regulatory Frameworks that efficiency benchmarking may be an important tool for the regulator as the rigour and accuracy of benchmarking N/A N/A N/A The PC’s final report and Australian Government response released on 26 June 2013.
Progress-Report-Mid-2013.docx