Economic Interpretation of clauses 6.5.6 and 6.5.7 of the National Electricity Rules
7 May 2008
By Greg Houston, Ann Whitfield, and Brendan Quach
NERA prepared this report following a request by EnergyAustralia to provide an economic analysis of provisions in the transitional National Electricity Rules (NER) concerning the capital and operating expenditure forecasts submitted by a Distribution Network Service Provider (DNSP). In particular, EnergyAustralia asked NERA to analyze both the overall structure and terms within the relevant provisions, including the concepts of "the efficient costs of achieving the [capital and operating] expenditure objectives" and "a prudent operator in the circumstances of a DNSP."
