(3) t = 1 (4) t = 2,3,4,5 Where: is the maximum allowable revenue in year t. is the price of component i of tariff j in year t. is the forecast quantity of component i of tariff j in year t. is the annual smoothed revenue requirement in the Post Tax Revenue for year t. Adjusted as necessary to account for any difference between actual inflation and estimated inflation. is the adjusted annual smoothed revenue requirement for year t. is the sum of incentive scheme adjustments in year t. To be decided in the final decision. is the sum of end-of-period adjustments in year t. Likely to incorporate but not limited to adjustments from the initial regulatory control period. To be decided in the final decision. is the sum of annual adjustment factors in year t. Likely to incorporate but not limited to adjustments for the overs and unders account. To be decided in the final decision. is the percentage increase in the consumer index. To be decided in the final decision. is the X-factor in year t, incorporating annual adjustments to the PTRM for the trailing cost of debt where necessary. To be decided in the final decision. is the sum of the s-factors for all parameters application of the s-bank adjusted for the change in the annual revenue requirement between the last year of the 2011-2015 regulatory control period to 2016. is the s-factor for regulatory year t. AER's reasons control mechanism for alternative control services — We will apply a revenue cap to the type 5 and 6 and smart metering service - not subject to competition. We will apply caps on the prices of individual services in the next regulatory control period to alternative control services. Our approach is supported by the five Victorian electricity distributors. We have classified the following services as alternative control services: type 5, 6 and smart metering services - regulated service ancillary network services shared public lighting assets
(3) t = 1 (4) t = 2,3,4,5 Where: is the maximum allowable revenue in year t. is the price of component i of tariff j in year t. is the forecast quantity of component i of tariff j in year t. is the annual smoothed revenue requirement in the Post Tax Revenue for year t. Adjusted as necessary to account for any difference between actual inflation and estimated inflation. is the adjusted annual smoothed revenue requirement for year t. is the sum of incentive scheme adjustments in year t. To be decided in the final decision. is the sum of end-of-period adjustments in year t. Likely to incorporate but not limited to adjustments from the initial regulatory control period. To be decided in the final decision. is the sum of annual adjustment factors in year t. Likely to incorporate but not limited to adjustments for the overs and unders account. To be decided in the final decision. is the percentage increase in the consumer index. To be decided in the final decision. is the X-factor in year t, incorporating annual adjustments to the PTRM for the trailing cost of debt where necessary. To be decided in the final decision. is the sum of the s-factors for all parameters application of the s-bank adjusted for the change in the annual revenue requirement between the last year of the 2011-2015 regulatory control period to 2016. is the s-factor for regulatory year t. AER's reasons — control mechanism for alternative control services We will apply a revenue cap to the type 5 and 6 and smart metering service - not subject to competition. We will apply caps on the prices of individual services in the next regulatory control period to alternative control services. Our approach is supported by the five Victorian electricity distributors. We have classified the following services as alternative control services: type 5, 6 and smart metering services - regulated service ancillary network services shared public lighting assets
AER%20Victorian%20-%20final%20Framework%20and%20Approach_6.DOCX