Review of Rate of Return Guideline. Response to AER proposal for changes to the National Electricity Rules and National Gas Rules regarding the review process of the Rate of Return Guideline

In this submission, PIAC supported the AER’s approach of reviewing the Guideline after the rate of return issues have been further clarified in the relevant appeals processes. We agreed with the AER that there would be no value in commencing a review of the Guideline until the disputed issues are settled. This is a practical approach that ensures the next Guideline provides relevant and up- to-date guidance for stakeholders. We understood that the AER would look to the timetable of the next revenue determination resets and on that basis make best endeavours to ensure the timing of the review minimises any potential disruption. PIAC agreed with the AER that the rule change proposal was unlikely significantly to impact on the energy market, and was unlikely materially to affect the regulation of gas and electricity network businesses as the current Guideline will remain in force. PIAC therefore agreed that this proposal should be treated as non-controversial and be expedited in accordance with section 96 of the National Electricity Law and section 304 of the National Gas Law.