The Australian Energy Regulator QLD Electricity distribution determination 2015–2020 Meeting with consumers – No 2 30 January 2014

TOPICS Welcome Recap of meeting 1 Update – framework & approach (F&A) Specific issues raised by interested parties Next steps 2

RECAP OF MEETING No rule changes Better Regulation program Framework and approach Consumer engagement Qld Government 30-year electricity plan Ergon Energy’s tariff structure 3

TIMELINES 4 Dec 2013 Preliminary positions F&A 30 April 2014 F&A published 31 Oct 2014 Businesses submit regulatory proposals Jan/Feb 2015 Submissions on regulatory proposals close April 2015 AER publishes preliminary determination June 2015 Revised regulatory proposals submitted 1 July 2015 Submissions on revised regulatory proposals close 31 October 2015 AER publishes final determination

QLD F&A | Preliminary positions Classification of services ◦ Unbundle metering services and classify as alternative control Pricing of services ◦ Standard control – revenue cap ◦ Alternative control – price caps on individual services 5

QLD F&A | Preliminary positions Incentive schemes: ◦ apply the national STPIS but not apply the GSL component ◦ apply the new EBSS ◦ apply the new CESS ◦ continue to apply DMIS. Apply the expenditure forecast assessment guideline Use forecast depreciation 6

SPECIFIC ISSUES RAISED Impact of stakeholder input process Cost of capital Forecast demand and demand management Benchmarking Application of incentive schemes 7

NEXT STEPS Discuss issues raised in our preliminary positions paper, prior to the deadline for written submissions Meeting 2 (30 January 2014) Discuss how we are considering submissions received and the likely direction of the final F&A Meeting 3 (week beginning 17 March 2014) Discuss possible timing and content of next workshop or meeting Future workshops/meetings 8

FURTHER CONSULTATION What do you want to know? How can we assist? Contact: Moston Neck Robyn Lowien

QUESTIONS? 10