The JEC made submissions to the AER consultation on the Expenditure Forecast Assessment Guidelines NEO Review Draft Decision.
The context for this process is the need for AER guidelines to reflect the amendment of the national energy objectives which now require decision makers to consider achievement of emissions targets when determining the long term interests of consumer of electricity and gas.
The JEC noted our concerned that the scope of the AER’s proposed guidelines falls short of what is required by the amended objective and the Minister’s intent in introducing it. As proposed in the Draft Decision, emissions reduction is only to be considered when approving network expenditure that will reduce emissions, and not for expenditure that either increases emissions, or maintains network infrastructure that has a role in continued emissions which impact emissions reduction targets. The JEC view is that consideration of achievement of the emission targets at all levels is relevant to the AER’s approval of all expenditure.
