Market Reviews: Open

Electricity Network Economic Regulatory Framework Review

Reference:
EPR0050
Reviewed by:
AEMC
Initiated by:
COAG Energy Council
Date initiated:
31-Aug-2016
Project Leader:
Su-Min Lim
Overview

The AEMC has published an approach paper and its preliminary views on the electricity network economic regulatory framework review. The approach paper sets out how the AEMC intends to conduct the task, the proposed information sources and the priority areas of focus for the 2017 report.

Overview

The AEMC has published an approach paper and its preliminary views on the electricity network economic regulatory framework review. The approach paper sets out how the AEMC intends to conduct the task, the proposed information sources and the priority areas of focus for the 2017 report.

In August 2016, the COAG Energy Council tasked the AEMC with monitoring developments in the energy market, including the increased uptake of decentralised energy, and providing advice on whether the economic regulatory framework for electricity transmission and distribution networks is sufficiently robust and flexible to “continue to achieve” the national electricity objective (NEO) in light of these developments. The AEMC will publish its findings on 11 July this year.

The tasking follows previous advice from officials that identified potential risks to the economic regulatory framework’s ability to achieve the NEO in future scenarios where there is an increased uptake of decentralised energy. Officials recommended that the AEMC be tasked to monitor market developments and provide advice to the COAG Energy Council to inform future policy decisions regarding potential changes to the economic regulatory framework.

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