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The Australian Energy Regulator Economic benchmarking Input data

The Australian Energy Regulator Economic benchmarking Input data. Agenda. This is the 6 th workshop on economic benchmarking techniques – one more to come Draft explanatory guidelines in August Final by 29 November. How does this fit into the broader consultation?.

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The Australian Energy Regulator Economic benchmarking Input data

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  1. The Australian Energy RegulatorEconomic benchmarking Input data

  2. Agenda

  3. This is the 6th workshop on economic benchmarking techniques – one more to come • Draft explanatory guidelines in August • Final by 29 November How does this fit into the broader consultation?

  4. Economic benchmarking workshops

  5. To discuss data requirements measurement of inputs • Is the data list comprehensive? • Are the preliminary definitions suitable? • To consider some input specification issues • Easements • Distribution network complexity • System capacity and capital input quantities • The WACC for economic benchmarking Objective of this workshop

  6. To discuss the role of economic benchmarking in the review of expenditure forecasts • Provide an illustration of its application • Consider practical application issues • Discuss the specification of economic benchmarking in the EFA guideline Objective of next workshop

  7. Some common issues • Cost allocation • Definitions of cost categories • Workshop on 16 May to consider shared costs • Consistent reporting requirements Overlap with category analysis

  8. Economic Insights presentation

  9. Discussion points • Treatment of easements • Complexity of different distribution networks • WACC for economic benchmarking Model specification

  10. Economic Insights presentation

  11. AWOTE or WPI? • Data requirements • DNSP definitions pg. 14 • TNSP definitions pg. 23 Opex discussion points

  12. Economic Insights presentation

  13. Two main components • Asset quantities • Asset costs – RAB depreciation Capital discussion points

  14. Asset quantities • DNSP quantities – pg. 15 • TNSP quantities – pg. 24 Capital discussion points

  15. RAB parameters • DNSP – pg. 18 • TNSP – pg. 26 Capital discussion points

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