Category analysis questions––Expenditure categorisation ENA: The ENA agrees with the list of expenditure drivers identified in the issues paper, however noted a number of issues including but not limited to: the relative contribution of, and the interrelationships between, drivers that network assets can become obsolete before their condition deteriorates that safety and environment cost drivers associated with legislative changes would generally be captured in the changes in Energy Networks Association obligations category Ergon Energy Question 45 there are expenditure drivers resulting from state based regulation which can differ by state. (Attachment B p. 1) SP AusNet Do you agree with this list of Ergon: The list is incomplete. Further industry consultation is required to develop suitable expenditure drivers, and to further expenditure drivers? Are there any Aurora Energy understand how each driver should interact with others. others that should be added? Grid Australia (pp. 13–14) Major Energy Users Inc. SP AusNet: Agrees with the list of expenditure drivers, noting that they relate to DNSPs. (p. 23) Aurora: Considers the list appears sufficient. (p. 17) Grid Australia: Although relevant to transmission, the terminology used in transmission is slightly different. (p. 28) MEU: These should be reduced into exogenous and endogenous categories and further reduced into sub elements of CBD, urban, etc. (p. 32) Question 46 ENA: The expenditure drivers identified are not necessarily correlated, and that if they were the extent of correlation would be open Energy Networks Association to subjectivity resulting in errors due to inconsistency. …where there is some correlation between expenditure drivers, the extent To what extent do you think the Ergon Energy that those correlations appear would already be captured in the examination of historical expenditure. (Attachment B p. 2) expenditure drivers are correlated with
Category analysis questions––Expenditure categorisation Question 45 Do you agree with this list of expenditure drivers? Are there any others that should be added? Energy Networks Association Ergon Energy SP AusNet Aurora Energy Grid Australia Major Energy Users Inc. ENA: The ENA agrees with the list of expenditure drivers identified in the issues paper, however noted a number of issues including but not limited to: the relative contribution of, and the interrelationships between, drivers that network assets can become obsolete before their condition deteriorates that safety and environment cost drivers associated with legislative changes would generally be captured in the changes in obligations category there are expenditure drivers resulting from state based regulation which can differ by state. (Attachment B p. 1) Ergon: The list is incomplete. Further industry consultation is required to develop suitable expenditure drivers, and to further understand how each driver should interact with others. (pp. 13–14) SP AusNet: Agrees with the list of expenditure drivers, noting that they relate to DNSPs. (p. 23) Aurora: Considers the list appears sufficient. (p. 17) Grid Australia: Although relevant to transmission, the terminology used in transmission is slightly different. (p. 28) MEU: These should be reduced into exogenous and endogenous categories and further reduced into sub elements of CBD, urban, etc. (p. 32) Question 46 To what extent do you think the expenditure drivers are correlated with Energy Networks Association Ergon Energy ENA: The expenditure drivers identified are not necessarily correlated, and that if they were the extent of correlation would be open to subjectivity resulting in errors due to inconsistency. …where there is some correlation between expenditure drivers, the extent that those correlations appear would already be captured in the examination of historical expenditure. (Attachment B p. 2)
AER%20Explanatory%20statement%20-%20draft%20expenditure%20forecast%20assessment%20guideline%20-%20August%202013.DOCX