News & insights
Date: July 2023 | Client: AER | Sector: Energy | Expertise: Price controls
CEPA Australia responds to Australian Energy Regulator’s invitation to comment
As an interested stakeholder, CEPA Australia is pleased to make submissions to the Australian Energy Regulator (AER) on the Gas Distribution Network Tariffs Review Issues Paper. The paper asks about the choice between a price cap and a revenue cap. In the face of substantial uncertainty, we favour retaining a price cap as it offers improved protection to customers against the risk of future price rises. Nonetheless, beyond the end of each regulatory period, the current regulatory framework implicitly operates like a revenue cap.
We suggest that this gives rise to more serious problems that must be addressed if the AER is to maintain confidence in the regulatory framework.
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