Better regulation workshop Economic benchmarking inputs.

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Presentation transcript:

Better regulation workshop Economic benchmarking inputs

Recap of recent activity Issues paper released late last year Submissions due last week Two recent workshops Transmission outputs and environmental factors Distribution outputs and environmental factors This is the third workshop on economic benchmarking

Summary of recent workshops Numerous matters discussed Discussion regarding the application of economic benchmarking Some stakeholders supportive & others apprehensive Broad agreement that the criteria for selecting outputs and environmental factors were appropriate

Summary of recent workshops - Outputs Functional outputs are preferable to billed outputs Throughput not considered to be a driver of costs Debate concerning the use of either peak demand or system capacity Broad agreement that reliability is an output – however issues regarding its use

Summary of recent workshops - Environmental factors Point made that economic benchmarking cannot account for all environmental factors Some discussion regarding the importance of environmental factors Support for the AER’s shortlist

Forward work program AER to consider workshop discussion submissions in preparing for next workshops Focus on measurement issues Development of definitions for inputs and environmental factors Further briefing notes to be released

Where are we today? DateSubject 13 MarchDNSP outputs and environmental factors 14 MarchTNSP outputs and environmental variables 20 MarchNSP inputs 30 AprilMeasurement – DNSP outputs and environmental variables 2 MayMeasurement – TNSP outputs and environmental variables 7 MayMeasurement - NSP inputs 22 MayPrescription in the EFA guideline & potential application techniques

Objective of today’s meeting Discuss the NSP input variables Durable vs non-durable inputs and input selection criteria Operating inputs Capital inputs Economic insights will present on these issues

Housekeeping Minutes of meeting will be recorded, but not attributed to particular stakeholders Please provide any comments that you have on the minutes by next Tuesday

Agenda TimeItem 9:00Introduction 9:20Durable vs non-durable inputs & input selection criteria 10:00Break 10:15Opex inputs 11:00Break 11:15Capital inputs 12:25Summary and next steps