Distribution Regulatory Proposal (2017-2019)

AER's final decision 

 The Australian Energy Regulator (AER) has released its final decision on the revenue TasNetworks is allowed to collect from our customers for distribution services for the period 1 July 2017 to 30 June 2019.

Through the AER’s acceptance of our proposed capital and operating expenditure forecasts, the AER has recognised that we’re operating our business efficiently and reducing costs while delivering a safe and reliable electricity supply to our customers.

The AER’s final decision and related information can be viewed on the below link

Final Decision


Our Revised Regulatory Proposal

TasNetworks has reviewed the AER’s preliminary decision of our Distribution Regulatory Proposal (2017-2019) and we have provided our response in the form of a revised regulatory proposal submitted to the AER on 2 December 2016.

It is anticipated the AER will make a final decision in April 2017, with the decision outcomes to apply from 1 July 2017.

View the full details of our initial proposal, revised proposal, overviews and supporting documentation.

The AER’s preliminary decision and related information can be viewed at www.aer.gov.au.


AER's draft decision

The Australian Energy Regulator (AER) has released its preliminary decision on the revenue TasNetworks is allowed to collect from our customers for distribution services for the period 1 July 2017 to 30 June 2019.

Through the AER’s acceptance of our proposed capital and operating expenditure forecasts, the AER has recognised that we’re operating our business efficiently and reducing costs while delivering a safe and reliable electricity supply to our customers.

TasNetworks will now review the preliminary decision in detail, and will provide a response in the form of a revised regulatory proposal which we will submit to the AER early December 2016.

The AER’s preliminary decision and related information can be viewed on at www.aer.gov.au


Our Submission

TasNetworks submitted its distribution Regulatory Proposal to the Australian Energy Regulator (AER) on 29 January 2016. The proposal sets out the revenue TasNetworks requires to efficiently manage the Tasmanian electricity distribution network from 1 July 2017 to 30 June 2019.

The Australian Energy Regulator will release an issues paper and call for public submissions in the near future and TasNetworks will receive a draft decision in September 2016.


Methodology

The forecasting methodology applied to arrive at our forecasts for operating and capital expenditure was submitted to the AER on 26 June 2015.

View the forecasting methodology (PDF).


Documentation

The full details of our proposal, overviews and supporting documentation is available.


Customer engagement

As part of preparing our Regulatory Proposal, and in line with our customer engagement framework, TasNetworks consulted with our customers on key aspects of our proposal and in November 2015 we established our Direction and Priorities for the upcoming regulatory period.  This followed extensive consultation with customers and stakeholders on the initial paper released in August 2015.

Engagement Plan

In early 2016, TasNetworks is required to submit our distribution Regulatory Proposal for the next regulatory period to the AER. Our next distribution regulatory period commences on 1 July 2017.

As part of preparing our Regulatory Proposal, TasNetworks is committed to consulting with our customers on key aspects of our proposal.

First round of customer engagement workshops

A first round of workshops with end-use consumers were held in October 2014. The key objective was to understand our customers’ preferences, and ensure they are considered as part of developing our forward work program. These workshops were held in Hobart and Launceston and attended by approximately 50 consumers. The workshops were facilitated by an external consultant and supported by TasNetworks staff from across our business.

Workshop held with the Office of the Tasmanian Economic Regulator's Customer Consultative Committee

A workshop was held with the Office of the Tasmanian Economic Regulators Customer Consultative Committee (OCCC) in October 2014.  Attendees included the Tasmanian Council of Social Services, Tasmanian Small Business Council, Renewable Energy Alliance and Local Government Association of Tasmania. The key outcome was to understand stakeholders’ preferences, and ensure they are considered as part of developing our forward work program.

Quantitative research

Telephone and online surveys have been conducted by an external facilitator, with a sample size of 1000 drawn from a broad group of demographics. Additional supplementary interviews were completed at Agfest 2015 and via the TasNetworks website. The report was released in June 2015. 

Agfest

 

TasNetworks participated in the Agfest rural display from 7-9 May 2015. Various customer activity stations formed part of the display, providing the opportunity to engage with customers on the services that we provide and how those services will be outlined in our Regulatory Proposal.

Second round of customer engagement workshops

Follow up workshops were held in June 2015, using the same external consultant from the October sessions.  The objective of these workshops was to outline what we have heard from our customers and demonstrate how those preferences and feedback have been integrated into our future expenditure programs and service standards.  We also used these workshops to seek further feedback from our customers.

Note: The Tariff Reform that formed part of these workshops occurred at a high-level and we have since amended our proposed tariff strategy based on feedback from our stakeholders and customers.

Targeted system planning engagement

A number of targeted system planning engagements took place from April through to December 2015 with external planning bodies, developers and customers. These engagements assisted us in understanding our customer expectations and concerns for developing our future plans for the network.  This included consultation on our network development and asset management strategies and from the TasNetworks Annual Planning Report (APR). The key outcome of these engagements was all parties gaining an overview of the APR and an understanding of any project deferment opportunities.

Direction and Priorities Consultation Paper

Insights collected through all of our engagement activities, along with our knowledge of the network, future trends and regulatory obligations, was collated in to a Direction and Priorities Consultation Paper (PDF). The Consultation Paper allows customers to respond to our future expenditure programs for our distribution services in more detail prior to TasNetworks submitting its Regulatory Proposal.

In September 2015 we sought public feedback on the Directions and Priorities Consultation paper and in November 2015 we produced our Directions and Priorities final paper (PDF) which addressed the public feedback provided.

You can view the feedback on these papers on our sumbissions page. Public feedback supports a strong foundation for the detailed proposal we must submit for the 2017-2019 regulatory period. We will make this submission to the AER in January 2016.

Supporting vulnerable energy customers

On the 22nd July, 2015 TasNetworks facilitated, in partnership with the Energy Networks Associate (ENA), a roundtable with a focus on supporting vulnerable customers. Australia’s energy markets are experiencing significant changes in technology, customer preference and the development of new information and markets. Given these changes, it is important to review the effectiveness of the support provided to vulnerable customers - those that are at risk of experiencing financial stress due to a moderate increase in their energy bills. The forum enabled a valuable discussion on these issues. This input will help to ensure that we have a strong foundation for the detailed proposals we must submit for the 2017-2019 regulatory period.

To read more about the roundtable agenda and presentations see links below:

You can contact us in the following ways:

Email: dd17@tasnetworks.com.au

Phone: Customer Service Centre 1300 361 811