Overview of the Guideline This Guideline sets out the AER's approach to assessing and setting distribution expenditure forecasts, and the information we require to do so. Introduction The NER require DNSPs and the AER to engage on a DNSP's expenditure forecasting methodology to ensure that both the AER and the DNSP are aware, in advance, of the information the AER requires to assess the DNSP's proposal. To help facilitate this, we must set out the types of assessments we will undertake and the information we will require to do so. This Guideline indicates our likely assessment approach for capex and opex, the techniques we propose to use and the information we will require from DNSPs. Many of the techniques here and their associated data are common to expenditure assessments under the NER and our annual benchmarking reports. We must consider these benchmarking reports when assessing regulatory proposals. This Guideline focuses on expenditure assessment for standard control services. However, we also review expenditure forecasts for alternative control services. At the framework and approach stage, we will consider the assessment approach and techniques we will likely apply to alternative control services once we have formed a view on the likely classification of distribution services. We expect we will use the same techniques to assess both alternative control services and standard control services. Structure of the Guideline This Guideline sets out: our task and general assessment approach under the regulatory framework our assessment techniques our approach to assessing capex and opex the information we require for expenditure assessment. Transitional issues The NER require us to indicate how (if practicable) we will deal with transitional issues if a guideline indicates we may change our regulatory approach in future distribution determinations. While this Guideline indicates we may change our assessment approach in some ways, we do not consider transitional issues arise as a result.
Overview of the Guideline This Guideline sets out the AER's approach to assessing and setting distribution expenditure forecasts, and the information we require to do so. Introduction The NER require DNSPs and the AER to engage on a DNSP's expenditure forecasting methodology to ensure that both the AER and the DNSP are aware, in advance, of the information the AER requires to assess the DNSP's proposal. To help facilitate this, we must set out the types of assessments we will undertake and the information we will require to do so. This Guideline indicates our likely assessment approach for capex and opex, the techniques we propose to use and the information we will require from DNSPs. Many of the techniques here and their associated data are common to expenditure assessments under the NER and our annual benchmarking reports. We must consider these benchmarking reports when assessing regulatory proposals. This Guideline focuses on expenditure assessment for standard control services. However, we also review expenditure forecasts for alternative control services. At the framework and approach stage, we will consider the assessment approach and techniques we will likely apply to alternative control services once we have formed a view on the likely classification of distribution services. We expect we will use the same techniques to assess both alternative control services and standard control services. Structure of the Guideline This Guideline sets out: our task and general assessment approach under the regulatory framework our assessment techniques our approach to assessing capex and opex the information we require for expenditure assessment. Transitional issues The NER require us to indicate how (if practicable) we will deal with transitional issues if a guideline indicates we may change our regulatory approach in future distribution determinations. While this Guideline indicates we may change our assessment approach in some ways, we do not consider transitional issues arise as a result.
AER%20Draft%20expenditure%20assessment%20guideline%20-%20distribution%20-%20August%202013_0.DOCX