The Australian Energy Market Commission (AEMC) has released proposed draft rule changes on the economic regulation of energy networks.

 

The AEMC’s draft determination for networks sets out in detail its response to proposals from the Australian Energy Regulator (AER) and a group of major energy users, looking to enhance the way in which the AER assesses network revenue requirements.

 

Minister for Resources and Energy, Martin Ferguson welcomed the release and the consultation process underway by the AEMC.

 

“These draft rules represent one piece of a broader package of work also underway through the Standing Council on Energy and Resources all aimed at ensuring our networks and our energy markets are delivering efficient outcomes to consumers,” Minister Ferguson said.

 

 “The proposed rules are designed to better equip the regulator to set network prices so consumers don’t pay more than is necessary for a reliable supply of electricity and necessary investment in networks still occurs.”

 

The Rules do not require government approval and are on track to be in place by November 2012, in time for the next round of network determinations in New South Wales and the Australian Capital Territory.

 

The detailed draft Rules are now out for consultation and submissions to the AEMC are due by 4 October 2012.

 

For further information see www.aemc.gov.au.