AER decision paper for their operating expenditure (opex) productivity growth forecast

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8th March 2019

AER
The Australian Energy Regulator (AER) has today published its final decision paper on the target scope for operating expenditure productivity gains for electricity distribution network service providers (DNSPs) that will apply over the next five to 10 years.

CEPA was pleased to support Ausgrid’s, EvoEnergy’s, and Jemena’s submission to the AER’s consultation. We drew on our experience in estimating productivity in other jurisdictions and sectors to comment on the AER’s evidence base, and to identify supplementary approaches and estimates that the AER took note of in its final decision. The AER’s final decision of 0.5% percent per annum benefits consumers while reflecting estimates of achievable operating expenditure productivity gains in Australia. The AER’s final decision was lower than its 1.0% draft decision, but higher than the 0% productivity target set in previous price controls.

To find out more about CEPA's energy sector expertise and experience in the APAC region, please contact Joel Cook by email or telephone +61 2 9006 1307