In this review, the AEMC found that using a TFP-based methodology could contribute to improvements in electricity and gas network regulation to achieve more efficient outcomes for consumers. Before the implementation of TFP-based network regulation could be considered, more consistent and robust data on network business' inputs and outputs needs to be collected and reported to the regulator. This data will improve the application of the current regulatory framework. 

Once sufficient robust data is collected, the Ministerial Council on Energy (MCE) could then assess if the conditions required for introducing a TFP-based methodology are met.  The MCE would also need to consider the merits of offering it as an alternative to the building blocks approach at that time.  For these reasons, the AEMC is at this stage proposing initial rules which will facilitate data collection and the assessment of whether the necessary conditions for introducing TFP are met.