AusNet Services proposal Table B2 shows AusNet Services' proposed cumulative change in opex for each rate of change component reported in its reset RIN. AusNet Services' rate of change methodology is different to ours because it adopted a different approach to forecasting price growth. AusNet Services proposed opex by rate of change drivers ($'000, 2015) 2016 2017 2018 2019 2020 Price growth 3612.3 6671.7 9732.7 12918.6 16279.9 Output growth 2674.8 5314.7 7928.7 12997.8 Productivity growth – – – – – Source: AusNet Services RIN table 2.16.1. We discuss how AusNet Services forecast each of the rate of change components below. Forecast price growth AusNet Services proposed price growth for the following categories: internal labour costs external labour costs non-labour costs. Table B3 outlines the consultants AusNet Services engaged for each price growth category and the methodology proposed by each consultant. Table B4 shows AusNet Services' annual percentage change for each of its proposed price growth categories. Table AusNet Services forecast price growth consultants and proposed methodology Price Consultant Method growth AusNet Services' existing EAs up until the expiry of those EAs. Following Internal Centre for International the expiry of the EAs, AusNet Services used the forecast change in the WPI labour Economics for the EGWWS sector as forecast by CIE. External Centre for International Forecast change in the WPI for the construction sector as forecast by CIE. labour Economics Non-labour Not applicable AusNet Services assumed non-labour prices will grow with the CPI. Source: AusNet Services, Regulatory proposal, p. 187.
AusNet Services proposal Table B2 shows AusNet Services' proposed cumulative change in opex for each rate of change component reported in its reset RIN. AusNet Services' rate of change methodology is different to ours because it adopted a different approach to forecasting price growth. AusNet Services proposed opex by rate of change drivers ($'000, 2015) 2016 2017 2018 2019 2020 Price growth 3612.3 6671.7 9732.7 12918.6 16279.9 Output growth 2674.8 5314.7 7928.7 12997.8 Productivity growth – – – – – Source: AusNet Services RIN table 2.16.1. We discuss how AusNet Services forecast each of the rate of change components below. Forecast price growth AusNet Services proposed price growth for the following categories: internal labour costs external labour costs non-labour costs. Table B3 outlines the consultants AusNet Services engaged for each price growth category and the methodology proposed by each consultant. Table B4 shows AusNet Services' annual percentage change for each of its proposed price growth categories. Table AusNet Services forecast price growth consultants and proposed methodology Price growth Consultant Method Internal labour Centre for International Economics AusNet Services' existing EAs up until the expiry of those EAs. Following the expiry of the EAs, AusNet Services used the forecast change in the WPI for the EGWWS sector as forecast by CIE. External labour Centre for International Economics Forecast change in the WPI for the construction sector as forecast by CIE. Non-labour Not applicable AusNet Services assumed non-labour prices will grow with the CPI. Source: AusNet Services, Regulatory proposal, p. 187.
AER%20-%20Preliminary%20decision%20AusNet%20distribution%20determination%20-%20Attachment%207%20-%20Operating%20Expenditure%20-%20October%202015_0.DOCX