New Frontier report – Outcome of merits review of AER reset decisions for NSW and ACT networks

On 26 February 2016, the Australian Competition Tribunal (Tribunal) issued its judgment in relation to merits reviews, sought by consumer groups and several regulated energy networks, of recent revenue reset Decisions issued by the Australian Energy Regulator (AER). These were among the largest and most complex merits reviews of their kind seen to date in Australia, and the Tribunal’s judgment is likely to have far-reaching consequences for how energy networks will be regulated in future. This briefing from Frontier (Australia) analyses the Tribunal’s findings and discusses the implications for the AER’s future Decisions.

Frontier advised the networks involved in these merits reviews on the two most substantive matters: the allowed rate of return and the use of benchmarking to assess the efficiency of operating expenditures.

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