We appreciated the opportunity to respond to Ausgrid’s proposal for the remaking of its 2014-19 revenue determination (the Proposal), following the remittal of that decision to the Australian Energy Regulator (AER) from the Australian Competition Tribunal and the Federal Court.
Consumers are looking to Ausgrid to provide high quality services, at affordable prices. In return, they accept that the investors should earn a fair return for their long-term investment in these regulated assets. For these reasons, Energy Consumers Australia is looking to Ausgrid to adopt long-term strategies, and revenue proposals that align the interests of their shareholders with the interests of their customers.
In forming our view of the Proposal, we have taken as our starting point the AER’s 2015 determination, and then considered whether the Proposal as a whole is in the long-term interests of the consumers, such that consumers served by the Ausgrid network will not have paid more than is necessary in the period 2014-19.
On balance Energy Consumers Australia is prepared to accept Ausgrid’s proposal to follow the AER’s 2015 determination and return $288 million to consumers. Consumers stand to benefit from the lower, more efficient levels of operating expenditure into the future and in lower prices from 1 July 2019.
The full submission can be read here.