Powercor forecast output growth using the same output growth measures and weightings we used in our preliminary decision. It updated its maximum demand forecasts and used the customer numbers and circuit length forecasts in our preliminary decision. We have also updated our output growth forecasts to reflect the output weights in our latest benchmarking report. Consequently we have forecast annual output growth 0.03 percentage points higher, on average, than Powercor did. We outline our detailed assessment of the rate of change in appendix B. Step changes We have included step changes in our alternative opex forecast for the following proposals: mobile devices customer information system and customer relationship management RIN compliance introduction of Chapter 5A. In these step changes contribute $10.2 million ($2015) or 0.9 per cent to our total opex forecast for Powercor for the 2016–20 regulatory control period. We consider these step changes represent the efficient and prudent costs of meeting new regulatory obligations or represent an efficient capex/opex trade-off. We were not satisfied there were reasons to change our opex forecast for other step changes. A summary of our conclusions are in Table 7.5. Table 7.5 Step changes ($ million, 2015) Preliminary Initial proposal Revised proposal Final decision decision Customer charter 0.5 - - – Superannuation - 4.6 - - – accumulation members Monitoring IT security 2.0 2.0 - – Mobile devices 4.1 3.5 3.5 – Customer Information System and Customer 5.2 3.1 3.1 3.1 Relationship Management Introduction of - - 5.5 - tariffs RIN compliance - - 2.5 2.5
Powercor forecast output growth using the same output growth measures and weightings we used in our preliminary decision. It updated its maximum demand forecasts and used the customer numbers and circuit length forecasts in our preliminary decision. We have also updated our output growth forecasts to reflect the output weights in our latest benchmarking report. Consequently we have forecast annual output growth 0.03 percentage points higher, on average, than Powercor did. We outline our detailed assessment of the rate of change in appendix B. Step changes We have included step changes in our alternative opex forecast for the following proposals: mobile devices customer information system and customer relationship management RIN compliance introduction of Chapter 5A. In these step changes contribute $10.2 million ($2015) or 0.9 per cent to our total opex forecast for Powercor for the 2016–20 regulatory control period. We consider these step changes represent the efficient and prudent costs of meeting new regulatory obligations or represent an efficient capex/opex trade-off. We were not satisfied there were reasons to change our opex forecast for other step changes. A summary of our conclusions are in Table 7.5. Table 7.5 Step changes ($ million, 2015) Initial proposal Preliminary decision Revised proposal Final decision Customer charter 0.5 – - - Superannuation - accumulation members 4.6 – - - Monitoring IT security 2.0 – 2.0 - Mobile devices 4.1 – 3.5 3.5 Customer Information System and Customer Relationship Management 5.2 3.1 3.1 3.1 Introduction of tariffs - - 5.5 - RIN compliance - - 2.5 2.5
AER%20-%20Final%20decision%20Powercor%20distribution%20determination%20-%20Attachment%207%20-%20Operating%20expenditure%20-%20May%202016.DOCX