AER Regulatory Reset

The Australian Energy Regulator (AER) is an important player in the electricity sector. The cost of the providing network services (via Ergon, Energex and/or Powerlink) accounts for around 50% of retail electricity prices.

Every five years, the AER sets allowances for capital expenditure (CAPEX), operating expenditure (OPEX) and cost of debt and equity (WACC). All of these allowances form part of each network’s revenue cap for the five year regulatory period. Every year of the regulatory period, the AER approves a suite of network tariffs that allows network providers to collect revenue up to the allowed revenue cap. In general terms, higher revenues for networks equal higher prices.

Australian Energy Regulator’s Better Regulation program.

CANEGROWERS remains committed to improving the regulatory regime for Australia’s energy network providers – principally the Queensland networks, Ergon, Energex and Powerlink.

In 2013, CANEGROWERS worked through the extensive Better Regulation program with the AER and other consumer groups. The purpose of Better Regulation was to improve the rigour of the rules the AER applies at its 5-yearly regulatory resets, to stop 'gold plating' of the network and to improve operational efficiencies of the network providers.

These are CANEGROWERS submissions:
CANEGROWERS submission to Better Regulation (expenditure forecast and incentives)
CANEGROWERS submission to Better Regulation (rate of return)

Ergon Energy regulatory reset

The 5-yearly reset of Ergon Energy’s revenues is currently underway. CANEGROWERS is currently in confidential discussions with Ergon Energy regarding the content of its regulatory proposal.
More information will be provided when it is publicly available. 

Energex regulatory reset

The 5-yearly reset of Energex’s revenues is currently underway. CANEGROWERS is currently in confidential discussions with Energex regarding the content of its regulatory proposal.
More information will be provided when it is publicly available.