Submission: Economic Regulation of Network Service Providers—Draft Determination
Consumer Action welcomes the opportunity to provide comments on the Draft Determination of the Australian Energy Market Commission in relation to the Economic Regulation of Network Service Providers Rule Change.
In summary,
- we strongly support the proposed changes in relation to the determination of operating expenditure and capital expenditure allowances, particularly the proposed change to clause 6.12.3(f);
- we are broadly supportive of the proposed changes to the rate of return framework, but are concerned that the appeals framework limits the ability of the rules to facilitate rate of return decisions that are in the long-term interests of consumers;
- we are broadly supportive of the proposed changes to address regulatory incentives relating to capital expenditure; and
- we are broadly supportive of the proposed changes to regulatory processes, but despite welcoming efforts to address lack of consumer engagement, we are not convinced that the Commission’s approach reflects a sufficient understanding of consumer engagement and related issues.
To read our full submission, click here: Economic Regulation of Network Service Providers—Draft Determination.
