specify economic benchmarking techniques in our Guidelines. This will allow us to refine our techniques over time. In determinations, we will use economic benchmarking models based on their intended use, and the availability and quality of data. Some models could be used to cross-check the results of other techniques. At this stage, it is likely we will apply multilateral total factor productivity (MTFP), data envelopment analysis (DEA) and an econometric technique to forecast opex. We anticipate including economic benchmarking in annual benchmarking reports. We are likely to use economic benchmarking to (among other things): measure the rate of change in, and overall, efficiency of NSPs. This will provide an indication of the efficiency of historical expenditures and the appropriateness of their use in forecasts. develop a top down total cost forecast of total expenditure. develop a top down forecast of opex taking into account: the efficiency of historical opex the expected rate of change for opex. Economic benchmarking will also indicate the drivers of efficiency change which will assist us in targeting our expenditure reviews. We consider economic benchmarking (including submissions) in more detail in Attachment A. Category level benchmarking Category level benchmarking allows us to compare expenditure across NSPs for categories at various levels of expenditure. It can inform us, for example, of whether a NSP's: base expenditure can be used for trend analysis forecast unit costs are likely to be efficient forecast work volumes are likely to be efficient forecast expenditure is likely to be efficient.
specify economic benchmarking techniques in our Guidelines. This will allow us to refine our techniques over time. In determinations, we will use economic benchmarking models based on their intended use, and the availability and quality of data. Some models could be used to cross-check the results of other techniques. At this stage, it is likely we will apply multilateral total factor productivity (MTFP), data envelopment analysis (DEA) and an econometric technique to forecast opex. We anticipate including economic benchmarking in annual benchmarking reports. We are likely to use economic benchmarking to (among other things): measure the rate of change in, and overall, efficiency of NSPs. This will provide an indication of the efficiency of historical expenditures and the appropriateness of their use in forecasts. develop a top down total cost forecast of total expenditure. develop a top down forecast of opex taking into account: the efficiency of historical opex the expected rate of change for opex. Economic benchmarking will also indicate the drivers of efficiency change which will assist us in targeting our expenditure reviews. We consider economic benchmarking (including submissions) in more detail in Attachment A. Category level benchmarking Category level benchmarking allows us to compare expenditure across NSPs for categories at various levels of expenditure. It can inform us, for example, of whether a NSP's: base expenditure can be used for trend analysis forecast unit costs are likely to be efficient forecast work volumes are likely to be efficient forecast expenditure is likely to be efficient.
AER%20Explanatory%20statement%20-%20draft%20expenditure%20forecast%20assessment%20guideline%20-%20August%202013.DOCX