Replacement Expenditure Planning Arrangements

PIAC supports the rule change proposed by the AER and the AEMC’s draft rules to provide additional transparency into the replacement expenditure of network businesses and encourage cost-effective non-network alternatives. PIAC considers that it will lead to lower costs for consumers overall by ensuring more efficient network investment as these benefits outweigh any compliance burden on network businesses. PIAC supports the draft determination to provide the AER with additional discretion around any revenue smoothing required. Furthermore, PIAC supports the additional transparency of the process by having the AER make this as a separate decision and expects that consumers and other stakeholders will have opportunity to provide input to this.