Energy Consumers Australia believes that significant improvement is possible in the application of economic regulation to electricity networks. We are particularly committed to regulatory innovation, such as the New Reg project, that put consumer preferences and priorities at the centre of the regulatory decision-making process.
In our presentation to the AEMC workshop some alternatives to improving the performance of incentive regulation were identified. The purpose of this was not to advocate for any of them, but simply to indicate that the discussion of the economic regulatory framework needs to be much broader than simply about the method of framing expenditure forecasts or incorporating expenditure into the roll forward model.
We believe that the consideration of reform to the technical elements of the framework necessitates the development of a formal analytic framework of economic regulation. We have commenced this work and intend to deliver it in July 2019.
The full submission can be read here.