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Electricity network regulation

Public inquiry

This inquiry has concluded. The final report was sent to Government on 9 April 2013 and released on 26 June 2013.

The purpose of the inquiry was 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 examined 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 was to consider and take into account work progressed through the Standing Council on Energy and Resources, the Australian Energy Market Commission (AEMC) and the Australian Energy Regulator (AER).

The Commission consulted widely with all relevant stakeholders and welcomed submissions from them.

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Government response

Media release: Productivity Commission to Examine Electricity Network Regulation

Please note: The draft report and issues paper are for research purposes only. For final outcomes of this inquiry refer to the inquiry report.

Issues paper Draft report