Electricity Network Regulation

Public inquiry

The Productivity Commission invites interested parties to register their interest in an inquiry into aspects of national electricity network regulation. Commencing in January 2012, the Commission has been asked to provide a Final Report to Government in April 2013.

The purpose of the inquiry is to inform the Australian Government about whether there are any practical or empirical constraints on the use of benchmarking of network businesses and then provide advice on how benchmarking could deliver efficient outcomes, consistent with the National Electricity Objective (NEO).

In addition, a second stream of this inquiry will examine if efficient levels of transmission interconnectors are being delivered, to inform the Australian Government about whether the regulatory regime is delivering efficient levels of interconnection to support the market.

The terms of reference specify that the Commission should:

• examine the use of benchmarking under the regulatory framework, incorporating any amendments introduced in the review period, in the National Electricity Rules and provide advice on how different benchmarking methodologies could be used to enhance efficient outcomes
• examine whether the regulatory regime, with respect to the delivery of interconnector investment in the National Electricity Market (NEM), is delivering economically efficient outcomes.

In undertaking the inquiry, the Commission will consider and take into account the work that is currently being progressed through the Standing Council on Energy and Resources, the Australian Energy Market Commission (AEMC) and the Australian Energy Regulator (AER).

The Commission will consult widely with all relevant stakeholders and welcomes submissions from them.

Contacts

Administrative matters

Jill Irvine Ph: 02 6240 3223

Other matters

Michelle Osborne Ph: 02 6240 3354
Ineke Redmond Ph: 02 6240 3310
Ralph Lattimore Ph: 02 6240 3326

Fax: 02 6240 3399
Email: electricity@pc.gov.au

Free call: 1800 020 083

Further information

• Productivity Commission to Examine Electricity Network Regulation - Media release from the Minister for Energy and Resources (external link)
• About the public inquiry process