Rule Changes: Open

Replacement expenditure planning arrangements

Reference:
ERC0209
Stage:
Preparation of Final Determination
Proponents:
AER
Project Leader:
Neil Howes
Date initiated:
27-Oct-2016
Overview

On 11 April 2017, the AEMC published a draft rule determination on a rule change request from the Australian Energy Regulator in relation to replacement expenditure planning arrangements for electricity networks.

On 11 April 2017, the AEMC published a draft rule determination on a rule change request from the Australian Energy Regulator in relation to replacement expenditure planning arrangements for electricity networks.

While the draft rule is a more preferable rule it incorporates many of the elements proposed by the Australian Energy Regulator.

The draft rule requires electricity network service providers to include information on all planned network asset retirements and certain de-ratings in their annual planning reports. It also extends the current regulatory investment test framework for electricity transmission and distribution networks to include replacement expenditure.  A number of ancillary changes to the National Electricity Rules have also been made in the draft rule.

Stakeholders are invited to make submissions in response to the draft rule and draft rule determination by Tuesday 6 June 2017.

Background

The AEMC commenced consultation on the rule change request on 27 October 2016. At this time, the AEMC also extended the time for the making of a draft rule determination to 13 April 2017. This extension was necessary given the complexity of the issues raised in the rule change request.

The rule change request was submitted to the AEMC on 1 July 2017.

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