The Australian Energy Regulator’s (AER) Draft Decision on Powerlink’s Revenue Proposal has confirmed Powerlink’s commitment to delivering better value to consumers.
Powerlink Chief Executive Merryn York said the AER accepted Powerlink’s proposed operating expenditure and rate of return approach, while reducing its proposed level of capital expenditure.
Ms York said the AER’s acceptance of most elements the Revenue Proposal showed that Powerlink was working to deliver better value to Queenslanders through increased efficiency and lower costs.
She said Powerlink would review the AER’s Draft Decision in the coming weeks and respond via a Revised Revenue Proposal by early December 2016.
“Powerlink now has 45 business days to review the Draft Decision and submit a Revised Revenue Proposal,” Ms York said.
“We have an important responsibility of providing electricity to almost four million Queenslanders and we are focused on doing our part in the overall electricity supply chain to deliver better value to Queensland consumers and customers.
“We have sought to align with the AER’s guidelines and approach as much as possible and submit a Revenue Proposal to meet the needs of our customers, while still allowing for the delivery of a reliable supply of electricity.”
Overview of AER’s Draft Decision
| Key Component | Powerlink's Revenue Proposal | AER Draft Decision | % Change |
|---|---|---|---|
| Total Revenue ($m) | 4,017.2 | 3,720.8 | -7.4 |
| Total capital expenditure ($m) | 957.1 | 772.6 | -19.3 |
| Total operating expenditure ($m) | 976.7 | 976.7 | No change |
| Rate of return (%) | 6.04 | 5.48 |
